What will costs have to be in order to achieve the target

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JW is the general manager of the Industrial Product Division, and his performance is measured using the residua income method. JW is reviewing the following forecasted information for his division for next year.

Category Amount(in thousands)

Working Capital P1,800

Revenue 30,000

Plant and equipment 17,200

Problem 1: If the imputed charge is 15% and JW wants to achieve a residual income target of P2,000,000, what will costs have to be in order to achieve the target?

Reference no: EM132781084

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