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cestrela7 [59]
2 years ago
8

Assume that Division Blue has achieved a yearly income from operations of $166,000 using $976,000 of invested assets. If managem

ent has set a minimum acceptable return of 8%, the residual income is a.$166,000 b.$105,504 c.$70,336 d.$87,920
Business
1 answer:
bija089 [108]2 years ago
8 0

Answer:

d.$87,920

Explanation:

Residual Income = Net Income - Cost of Investment

therefore

Residual Income = $166,000 - ($976,000 x 8%)

                            = $87,920

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