Rachael Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required...
Rachael Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 11%. In April, the Commercial Products Division had average operating assets of $100,000 and net operating income of $20,000. What was the Commercial Products Division's residual income in April?
Group of answer choices
A. $9,000
B. $80,000
C. $79,000
D. $20,000
Homework Answers
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Rachael Corporation uses residual income to evaluate the
performance of its divisions. The company's minimum required...
Select the best answer for the question. 3. Koogle Corporation uses residual income to evaluate the...
Select the best answer for the question. 3. Koogle Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 13%. In August, the commercial products division had average operating assets of $530,000 and net operating income of $76,700. What was the commercial products division's residual income in August? A. ($9,971) B. ($7,800) C. $9,971 D. $7,800 Mark for review (Will be highlighted on the review page)
Select the best answer for the question 3. Koogle Corporation uses residual income to evaluate the...
Select the best answer for the question 3. Koogle Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 13%. In August, the commercial products division had average operating assets of $530,000 and net operating income of $76,700. What was the commercial products division's residual income in August? A. ($9,971) B. ($7,800) C. $9.971 D. $7,800 Mark for review (Will be highlighted on the review page) 4. Hair Corporation bases its...
The Casket Division of Saal Corporation had average operating assets of $1,110,000 and net operating income...
The Casket Division of Saal Corporation had average operating assets of $1,110,000 and net operating income of $295,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 20%. Required: What was the Casket Division's residual income in January?
The Casket Division of Saal Corporation had average operating assets of $1,090,000 and net operating income...
The Casket Division of Saal Corporation had average operating assets of $1,090,000 and net operating income of $275,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 18%. Required: What was the Casket Division's residual income in January?
The Casket Division of Saal Corporation had average operating assets of $1,050,000 and net operating income...
The Casket Division of Saal Corporation had average operating assets of $1,050,000 and net operating income of $235,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 14% Required: What was the Casket Division's residual income in January? Residual income < Prex 2 of 13 Next >
The Casket Division of Saal Corporation had average operating assets of $1,020,000 and net operating income...
The Casket Division of Saal Corporation had average operating assets of $1,020,000 and net operating income of $205,200 in January. The company uses residual income to evaluate the performancee of its divisions, with a minimum required rate of return of 14% Required: What was the Casket Division's residual income in January? Residual income
QUESTION 23 Hasbro Company makes wheels which it uses in the production of children's bikes. Hasbro's...
QUESTION 23 Hasbro Company makes wheels which it uses in the production of children's bikes. Hasbro's costs to produce 100,000 wheels annually are as follows Direct Material $40,000 Variable Manufacturing Overhead An outside supplier has offered to sell Hasbro similar wheels for $1.80 per wheel. If the wheels are purchased from the outside supplier, $25,000 of annual fixed manufacturing overhead would be avoided and the facilities now being used to make the wheels would be rented to another company for...
Exercise 15-15 Residual income LO 15-7 Adams Cough Drops operates two divisions. The following information pertains to...
Exercise 15-15 Residual income LO 15-7 Adams Cough Drops operates two divisions. The following information pertains to each division for 2018: Sales Operating income Average operating assets Company's desired rate of return Division A $ 212,000 $ 15,700 $ 63,000 17% Division B $79,000 $ 9,400 $42,000 17% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income a. Division A Division B b. The division that increased the company's profitability more is
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last...
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Sales Operating income Operating assets, January 1 Operating assets, December 31 Small Appliances Cleaning Products Division Division $34,650,000 $31,380,000 2,406,200 1,252,800 6,397,000 5,710,000 7,500,000 6,700,000 Forchen, Inc., requires an 6 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ 2. Calculate residual income for the Cleaning Products Division. 3. What if the minimum required rate of...
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last...
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales $34,610,000 $31,390,000 Operating income 2,637,100 1,252,200 Operating assets, January 1 6,391,000 5,600,000 Operating assets, December 31 7,530,000 6,800,000 Forchen, Inc., requires an 6 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. 2. Calculate residual income for the Cleaning Products Division. 3. What if the minimum required rate of return...
Select the best answer for the question. 3. Koogle Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 13%. In August, the commercial products division had average operating assets of $530,000 and net operating income of $76,700. What was the commercial products division's residual income in August? A. ($9,971) B. ($7,800) C. $9,971 D. $7,800 Mark for review (Will be highlighted on the review page)
Select the best answer for the question 3. Koogle Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 13%. In August, the commercial products division had average operating assets of $530,000 and net operating income of $76,700. What was the commercial products division's residual income in August? A. ($9,971) B. ($7,800) C. $9.971 D. $7,800 Mark for review (Will be highlighted on the review page) 4. Hair Corporation bases its...
The Casket Division of Saal Corporation had average operating assets of $1,050,000 and net operating income of $235,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 14% Required: What was the Casket Division's residual income in January? Residual income < Prex 2 of 13 Next >
The Casket Division of Saal Corporation had average operating assets of $1,020,000 and net operating income of $205,200 in January. The company uses residual income to evaluate the performancee of its divisions, with a minimum required rate of return of 14% Required: What was the Casket Division's residual income in January? Residual income
QUESTION 23 Hasbro Company makes wheels which it uses in the production of children's bikes. Hasbro's costs to produce 100,000 wheels annually are as follows Direct Material $40,000 Variable Manufacturing Overhead An outside supplier has offered to sell Hasbro similar wheels for $1.80 per wheel. If the wheels are purchased from the outside supplier, $25,000 of annual fixed manufacturing overhead would be avoided and the facilities now being used to make the wheels would be rented to another company for...
Exercise 15-15 Residual income LO 15-7 Adams Cough Drops operates two divisions. The following information pertains to each division for 2018: Sales Operating income Average operating assets Company's desired rate of return Division A $ 212,000 $ 15,700 $ 63,000 17% Division B $79,000 $ 9,400 $42,000 17% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income a. Division A Division B b. The division that increased the company's profitability more is
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Sales Operating income Operating assets, January 1 Operating assets, December 31 Small Appliances Cleaning Products Division Division $34,650,000 $31,380,000 2,406,200 1,252,800 6,397,000 5,710,000 7,500,000 6,700,000 Forchen, Inc., requires an 6 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ 2. Calculate residual income for the Cleaning Products Division. 3. What if the minimum required rate of...
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales $34,610,000 $31,390,000 Operating income 2,637,100 1,252,200 Operating assets, January 1 6,391,000 5,600,000 Operating assets, December 31 7,530,000 6,800,000 Forchen, Inc., requires an 6 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. 2. Calculate residual income for the Cleaning Products Division. 3. What if the minimum required rate of return...
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