Computation of a residual income

Reference no: EM1311441

A corporation has provided the following data-

Return on investment (ROI)	15%
Sales	$120,000
Average operating assets	$60,000
Minimum required rate of return	12%
Margin on sales	7.5%

The corporation's residual income is-

a) $1,800

b) $5,400

c) $2,700

d) $3,600

Reference no: EM1311441

Questions Cloud

Contractionary fiscal policy : Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.

Probability-determining expected value : You play a game with two possible outcomes. Outcome A has probability 0.4 and outcome B has probability 0.6. When B occurs you win $2.00; otherwise, you lose $1.00. What is your expected value for this game?

Make a flexible budgeted income statement : Make a Flexible Budgeted Income Statement using Variable costing and Budgeted Income Statement and Flexible Budgeted Income Statement Variable Costing , Variance Analysis

Probability that student eats at fast food restaurant : Compute the probability that student eats at fast food restaurant 2 or more times per week?

Computation of a residual income : Computation of a residual income and A corporation has provided the following data

Expansionary fiscal policy : In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain?

Purpose a master budgeted income statement : Purpose a Master Budgeted Income Statement using Variable costing and Budgeted Income Statement ( static ) and Flexible Budgeted Income Statement Variable Costing , Variance Analysis

Demand deposit and stock of money : What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?

Find the position of the object to acquire real : Find the position of the object to acquire real, magnified image, inverted, and virtual, upright image.

User Account

All Pages