FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The Carioco Company has two divisions that operate independently of one another. The financial data for the year 2022 reported the following results:
Alpha Beta
Sales $3,000,000 $2,500,000
Operating income 750,000 550,000
Taxable income 650,000 375,000
Investment 6,000,000 5,000,000
The company's desired
Required: What are the respective residual incomes for the Alpha and Beta Divisions?
a.
$150,000 and $50,000
b.
$150,000 and $30,000
c.
$50,000 and a negative $150,000
d.
$30,000 and $50,000
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