Joana volunteers to deliver a last-minute presentation on behalf of her team. Which quality is Joana demonstrating?
2 answers:
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Answer:
d. If the manager invests in the additional project, residual income of the division will increase.
Explanation:
RI = Operating Income - (Operating Assets x Minimum Required Rate of Return)
with adding the additional project
Operating Income: $60000 +6000 =$66000
Operating Assets: $375000+$40000 =$415000
Residual income =$66000-14%*$415000 =$7900
Consider the attached information.
