Estes Company has assembled the following data for its divisions for the past year:
Question 117
Question 117
Multiple Choice
Estes Company has assembled the following data for its divisions for the past year: Average Operating Assets Sales Operating Income Turnover Margin Minimum Required Rate of Return Residual Income Division A $500,000?$100,0001.25?14%? Division B ?$520,000$20,30043.9%?$6,000 -What was Division A's residual income?
A) $20,000. B) $30,000. C) $35,000. D) $45,000.
Correct Answer:
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