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What division a residual income would be

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Reference no: EM132930266

Selected data from Division A of Green Company are as follows:

Sales$400,000

Average investment$352,000

Operating income$44,000

Minimum rate of return 12%

Problem 1: If the minimum rate of return was 8%, Division A's residual income (RI) would be:

Multiple Choice

Option 1: $1,760.
Option 2: $9,280.
Option 3: $42,240.
Option 4: $15,840.
Option 5: $36,960.

Reference no: EM132930266

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