Answered: The Commercial Division of Galena…

The Commercial Division of Galena Company has operating income of $163,680 and assets of $341,000. The minimum acceptable return on assets is 12%. What is the residual income for the division?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 5BE: Residual income The Commercial Division of Galena Company has operating income of 12,680,000 and...

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Question

Residual Income

The Commercial Division of Galena Company has operating income of $163,680 and assets of $341,000. The minimum acceptable return on assets is 12%.

What is the residual income for the division?
?

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