Selected data from Chering Division's accounting records revealed the following: Sales $ 358,600 Average investment $...
Selected data from Chering Division's accounting records revealed the following:
| Sales | $ | 358,600 | |
| Average investment | $ | 163,000 | |
| Net operating income | $ | 24,300 | |
| Minimum rate of return (divisional cost of capital) | 13 | % | |
If the minimum rate of return (i.e., cost of capital) was 12%, Chering Division's residual income (RI) would calculate to be:
Multiple Choice
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$2,920.
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$4,740.
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$18,732.
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$9,480.
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$8,320.
Homework Answers
Answer: $4,740
Explanation:
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Selected data from Chering Division's accounting records
revealed the following:
Sales
$
358,600
Average investment
$...
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Selected data from Chering Division's accounting records revealed the following: Sales Average investment Net operating income Minimum rate of return (divisional cost of capital) $272,640 $122,700 $ 19, 200 15% Chering Division's return on sales (ROS) is. Multiple Choice oooo
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