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kotegsom [21]
2 years ago
8

The Tipton Division of Dudley Company reported the following data last year: Return on investment 20 % Minimum required rate of

return 12 % Residual income $ 50,000 Tipton Division's average operating assets last year were: Multiple Choice A. $625,000 B. $250,000 C. $416,677 D. $333,333.
Business
1 answer:
pashok25 [27]2 years ago
7 0

Answer:

A. $625,000

Explanation:

We know that,

Residual income = Average operating assets × (Return on investment  - Minimum Required Rate of Return)

$50,000 = Average operating assets × (20% - 12%)

$50,000 = Average operating assets × 8%

So, the average operating assets would be

= $50,000 ÷ 8%

= $625,000

We simply apply the formula by considering all the items which are given in the question

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The amount of the estimated average income for a proposed investment of $73,000 in a fixed asset, giving effect to depreciation
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2 years ago
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3 years ago
Kristen Lu purchased a used automobile for $10,100 at the beginning of last year and incurred the following operating costs: Dep
densk [106]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

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3 0
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A toy manufacturer has three different mechanisms (‘alternatives") that can be installed in a doll that it sells. The different
Wittaler [7]

Answer:

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We will multiply the expected outcome by their probability then, we add them to get the expected monetary value per option:

\left[\begin{array}{ccccc}$WIND-UP&$Return&$Probability&$Weight\\$Light&325000&0.1&32500\\$Morerate&190000&0.3&57000\\$Heavy&170000&0.6&102000\\$Total&&1&191500\\\end{array}\right]

\left[\begin{array}{cccc}$PNEUMATIC&Return&Probability&Weight\\$Light&300000&0.1&30000\\$Morerate&420000&0.3&126000\\$Heavy&400000&0.6&240000\\$Total&&1&396000\\\end{array}\right]

\left[\begin{array}{cccc}$Electrical&Return&Probability&Weight\\$Light&-600000&0.1&-60000\\$Morerate&240000&0.3&72000\\$Heavy&800000&0.6&480000\\$Total&&1&492000\\\end{array}\right]

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2 years ago
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