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Radda [10]
3 years ago
15

Last year the company had net operating income of $450,000 on sales of $1,500,000. Lost Peak’s average operating assets for the

year were $1,700,000 and its minimum required rate of return was 10%. Required:Compute the company’s residual income for the year.
Business
1 answer:
vesna_86 [32]3 years ago
5 0

Answer:

$280,000

Explanation:

Computation for the company’s residual income for the year

Using this formula

Residual Income=Operating income- (Average operating assets×Rate of return)

Let plug in the formula

Residual Income = $450,000 – ($1,700,000 x 10%)

Residual Income=$450,000-$170,000

Residual income=$280,000

Therefore te company’s residual income for the year will be $280,000

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Because the New Testament is about Jesus
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A store asked 250 of its customers to study the relationship between the amount spent on groceries and income. a meaningful disp
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8 0
1 year ago
4.
valentina_108 [34]
<span>Salary is the correct answer. </span>
3 0
3 years ago
A much-used and potent managerial tool for determining whether a company performs particular functions or activities in a manner
Romashka [77]

Answer:

The correct answer is letter "E": benchmarking.

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Benchmarking is a continuous process by which products, services or work processes of leading entities are taken to be compared to our company so after the analysis improvements can be made and implemented. Benchmarking is defined as the model of excellence from which the "best practices" can be obtained in favor of our own company.

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Jakarta Company is a service firm with current service revenue of $500,000 and a 40% contribution margin. Its fixed costs are $8
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Answer and Explanation:

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3 years ago
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