The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the amount of residual income for the division? P 80,000 P 200,000 P 320,000 P 400,000 Group of answer choices 1 2 3 4
The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the amount of residual income for the division? P 80,000 P 200,000 P 320,000 P 400,000 Group of answer choices 1 2 3 4
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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The following are selected data for the division for the consumer products of ABC Corp for 2020:
Sales P 10,000,000
Average invested capital 4,000,000
Net Income 400,000
Cost of Capital 8%
What is the amount of residual income for the division?
- P 80,000
- P 200,000
- P 320,000
- P 400,000
Group of answer choices
1
2
3
4
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