The following information relates to the Cranberry Division of Innovative Bologna Corporation for last year:
-What was the Cranberry Division's residual income for last year?
A) $26,400
B) $36,000
C) $41,400
D) $51,000

Question

The following information relates to the Cranberry Division of Innovative Bologna Corporation for last year: 
-What was the Cranberry Division's residual income for last year?
A) $26,400 
B) $36,000 
C) $41,400 
D) $51,000

Quizplus · Accepted Answer

Residual income is calculated by subtracting the required return on investment from the actual income. The correct choice is based on the given options and the specific financial data provided in the problem, which is not included here.

The Following Information Relates to the Cranberry Division of Innovative