Question

Padini produces various types of office and casual wear for males and females. The marketing manager was asked to evaluate the company sales performance in the last month. The manager found that it is beneficial to categorize the products into two different groups: office wear and casual wear. Information about the two categories for last month is as follows: Sales $140,000 $116,000 Current Liabilities $39,000 $36,000 Operating IncomeTotal Assets Office wear Casual wear $52,000 $48,000 The marketing manager has specified a target 15% rate of return. $35,000 $29,000 Refer to the Padini data set, and compute each category's residual income.

Answer 1