FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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If the imputed charge is 15% and Tan wants to achieve a residual income target of P 1,460,000, what will costs have to be in order to achieve the target? 

James Tan is the general manager of the Industrial Product Division, and his performance is
measured sing the residual income method. Tan is reviewing the following forecasted information
for his division for next year.
Amount (thousands)
Category
Working capital
P 1,800
Revenue
30,000
Plant and equipment
17,200
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Transcribed Image Text:James Tan is the general manager of the Industrial Product Division, and his performance is measured sing the residual income method. Tan is reviewing the following forecasted information for his division for next year. Amount (thousands) Category Working capital P 1,800 Revenue 30,000 Plant and equipment 17,200
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