Yoho Company Reported the Following Financial Numbers for One of Its

question 36

Multiple Choice

Yoho Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets. Compute residual income for the division:

• A) $150,450.
• B) $196,750.
• C) $150,500.
• D) $133,000.
• E) $100,300.