Using the Information Below, Calculate the Residual Profit A) $24 000
B) $51 000
C) $48 000
D)

question 22

Multiple Choice

Using the information below, calculate the residual profit.
$$\begin{array} { l r } \text { Sales } & \$ 240000 \\\text { Operating profit } & \$ 60000 \\\text { Average operating assets } & \$ 80000 \\\text { Shareholders' equity } & \$ 60000 \\\text { Minimum required rate of return } & 15 \%\end{array}$$

• A) $24 000
• B) $51 000
• C) $48 000
• D) $60 000

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Definitions:

Dual Agency

A real estate arrangement where one agent represents both the buyer and the seller in a transaction.

Apparent Authority

The ability of an agent to bind a principal where the principal has not notified third parties of the restricted or terminated authority of the agent.

Principal

A person on whose behalf an agent acts.

Terminated

The end of an employee's employment due to dismissal or discharge by the employer, often for cause or due to organizational changes.