Question

Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company's minimum required rate of return 16 % The division's residual income is closest to: Multiple Choice
a. $2,808,960
b. $4,088,960
c. $(3,027,840)
d. $1,528,960

Answer 1

Answer: The Answer Is B

Explanation:

Answer 2

Answer:

The correct answer is d.

Explanation:

Net operating income $2,808,960

Minimum required return (8,000,000X16%)= 1,280,000

$2,808,960 - 1,280,000 =  Residual Income - 1,528,960