Deskin Corporation Uses Residual Income to Evaluate the Performance of Its

question 17

Multiple Choice

Deskin Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 19%. In February, the Commercial Products Division had average operating assets of $780,000 and net operating income of $139,800. What was the Commercial Products Division's residual income in February?

• A) -$8,400
• B) -$26,562
• C) $8,400
• D) $26,562

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Definitions:

Public Speaking

The art of effectively communicating to an audience through speech, often for the purpose of informing, persuading, or entertaining.

Apprehensive

Feeling anxious or fearful that something bad or unpleasant will happen.

Main Points

The primary or most important ideas, facts, or arguments presented in a discussion or text.

Memorable Take-Away

A key impression or central message that remains with the audience after a presentation or communication.