96% Thu 2:35 PM a E Preview File Edit View Go Tools Window Help blackboard. pace

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96% Thu 2:35 PM a E Preview File Edit View Go Tools Window Help blackboard. pace edu Isabella Georgopoulos O PACE UNIVERSITY My Resource Page Courses Community ePortfolio Bookstore Library Help b. $30,600 c. $30,000 PM d. $51,600 e. Correct answer not listed. HD QUESTION 8 10 points Save Answer Mike Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 14%. In January, the Commercial Products Division had average operating assets of $970,000 and net operating income of $143,700. What was the Commercial Products Division's residual income in January? ho 00 PM a. -$20,118 b. $20,118 c. $7,900 Shot d. -$7,900 31 AM e. Correct answer not listed ho 10 points save Answer QUESTION 9 53 PM Ahartz Industries is a division of a major corporation. Data concerning the most recent year appears below $7,820,000 Sales $445,740 Net operating income ho Average operating assets S2,000,000 59 PM

Explanation / Answer

Average operating assets = $970,000

Minimum ROR = $970,000 * 14%

= $ 135,800

Products division residual income in january = net operating income - Minimum ROR

= 143700 - 135800 = $7900 (OPTION c)

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