1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Katyanochek1 [597]
3 years ago
14

Division ABC has $750,000 invested in assets and earned $200,000 in income. Division XYZ has $800,000 invested in assets and ear

ned $210,000 in income. The company's target rate is 10%. Which division has the highest residual income
Business
1 answer:
Rus_ich [418]3 years ago
4 0

Answer:

Division XYZ has the highest residual income

Explanation:

Residual income is the excess of the controllable profit over the opportunity cost of capital invested.

It is used to appraise and evaluate the performance of separate divisions of the same company where different managers are responsible for each

It is computed as follows:

Residual income = Controllable profit - (cost of capital× operating assets)

<em>Division ABC</em>

Residual income = 200,000 - (10%×750,000) = $125,000

Residual income= $125,000

<em />

<em>Division XYZ</em>

Residual income = 210,000 - (10% ×800,000) = $130 ,000

Residual income= $130,000

Division XYZ has a higher residual income of $130,000 compared to the $125,000 of division ABC. A difference of $5,000 higher.

You might be interested in
Which area of study involves microeconomics?
Mazyrski [523]

Answer:

The science of microeconomics covers a variety of specialized areas of study including: Industrial Organization: the entry and exit of firms, innovation, and the role of trademarks. Labor Economics: wages, employment, and labor market dynamics.

Explanation:

5 0
3 years ago
Read 2 more answers
The amount of oil that is economically feasible to extract from a deposit using current technology is known as ______ oil reserv
strojnjashka [21]

Answer: Proven oil reserves

Explanation:

Proven oil reserves are those that humans can extract oil from given our current technological and economic situations.

Under Proven oil reserves there are those that are Proven developed and those that are Proven Underdeveloped. Proven Developed ones can be extracted from as they come from already existing wells. Proven Underdeveloped however would need further investment to get them ready.

6 0
3 years ago
Can I Plss get some help on this
Verdich [7]

Based on the inflation rate and the fact that it is rising, the right recommendation would be to A. raise the reserve ratio.

<h3 /><h3>How can you decrease inflation?</h3>

Inflation can be reduced when the reserve ratio is raised because it will reduce the amount of money that banks have to loan out.

This means that there will be less money in the economy which will reduce inflation because less money means less demand for goods and services.

Find out more on effects of inflation at brainly.com/question/27889691.

#SPJ1

3 0
1 year ago
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 37,000 shares authorized, 19,2
kipiarov [429]

Answer:

E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.

Explanation:

The Journal entry is shown below:-

Retained earnings Dr, $7,400 (14,800 × $0.50)

             To Common dividend Payable $7,400

(Being dividend declaration is recorded)

Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability

So the correct option is D.

4 0
3 years ago
The designated market value:a. is always the middle value of replacement cost, net realizable value, and net realizable value le
eduard

Answer:

a. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin.

Explanation:

As we know that inventory will be recorded at cost or market value whichever is lower. But in the given case, the replacement cost would be recorded at higher values and lesser values. Higher values represent the Net realizable value whereas the lesser values represent the net realizable value less than the normal profit margin.

And if the replacement cost lies in this range than it represents the designated market value.  

Hence, option a is correct.

4 0
2 years ago
Other questions:
  • In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. by mid
    6·1 answer
  • Kelly and tim jarowski plan to refinance their mortgage to obtain a lower interest rate. they will reduce their mortgage payment
    15·1 answer
  • Katherine, Alliah, and Paulina form a partnership. Katherine contributes $150,000. Alliah contributes $150,000, and Paulina cont
    10·1 answer
  • Which of the following is LIKELY to have the biggest strategy-shaping impact on on-demand transportation providers such as Uber
    8·1 answer
  • A type of partnership called a ___________ acts much like a corporation and is traded on stock exchanges, but it is taxed like a
    8·1 answer
  • What is pure competition?
    14·2 answers
  • Beginning raw materials inventory $ 15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in
    13·1 answer
  • Is a market where securities are bought and sold
    5·1 answer
  • Describe a presentation or a briefing you have conducted recently. how did you adapt it to your public? how did your auditors re
    7·1 answer
  • aliyah has started a mobile salon service. while she recognizes the risks involved in operating a business
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!