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diamong [38]
3 years ago
11

Payne Company reported the following information for the current year: Sales $ 840,000 Average operating assets $ 340,000 Desire

d ROI 12 % Net income $ 54,000 The company's residual income was: Multiple Choice $40,800. $6,000. $13,200. $19,200.
Business
1 answer:
const2013 [10]3 years ago
4 0

Answer:

Residual income will be $13200

So option (c) will be correct answer

Explanation:

We have given Sales = $840000

Average operating assets = $340000

Desired ROI = 12%

Net income = $54000

We have to find the residual income

Residual income is given by

Residual income = Net income - ( Average operating assets× desired ROI )

= $54000 - ( $340000 ×0.12 ) = $13200

So option (c) will be correct answer

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Therefore When best buy and sears engage in a price war on maytag appliances, <u>Horizontal</u> channel conflict can occur.

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