Chace Products is a division of a major corporation. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. The company's minimum required rate of return is 12%.
-The division's residual income is closest to:
A)$575,100
B)$1,175,100
C)$(1,980,900)
D)$(24,900)

Question

Quizplus · Accepted Answer

The Answer of Chace Products is a division of a major corporation. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. The company's minimum required rate of return is 12%.
-The division's residual income is closest to:
A)$575,100
B)$1,175,100
C)$(1,980,900)
D)$(24,900)

Chace Products Is a Division of a Major Corporation