Cabal Products Is a Division of a Major Corporation

question 41

Multiple Choice

Cabal Products is a division of a major corporation. Last year the division had total sales of $10,040,000, net operating income of $582,320, and average operating assets of $4,000,000. The company's minimum required rate of return is 14%.
-The division's residual income is closest to:

• A)$582,320
• B)$22,320
• C)$(823,280)
• D)$1,142,320

---

Definitions:

Adrenal Glands

Small glands located on top of each kidney which produce various hormones including adrenaline and cortisol, involved in response to stress.

Visual Cliff

An experimental apparatus used to measure infants' perception of depth and their fear of falling.

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Emotional Reactions

Immediate responses to stimuli or situations that involve feelings, ranging from happiness and love to anger and fear.