Answer:
Residual income= $36,000
Explanation:
Residual income is the income that is generated in excess of the minimum required rate of return, which in this case is 10%. Any income above 10% return is considered as residual income. In this case the investment is 1,800,000 and 10% of that is 180,000 (0.1*1,800,000). So any income made above $180,000 will be residual income. In order to find the residual income we subtract the minimum income required from the actual income.
In this case the minimum income required is 180,000 and the actual operating income is 216,000 so residual income=
216,000-180,000= $36,000
Answer:
Explanation:
Please check attachment for the solution to the question.
It's a method where <span>subordinates share a significant degree of decision-making power with their immediate superiors
One positive benefit of the employee involvement and participation is that companies will prepare more employees to understand the company's operational method and make more potential leaders for the company if it choose to expand in the future</span>
<span>The money supply should be increased. This will put downward pressure on nominal interest rates because there is more money circulating in the system. As more money is involved, there is less cost that goes along with holding the money, and the interest rate associated with it will fall.</span>
Answer:
Loss of $4,000 in overall net income
Explanation:
Contribution margin is the net of the sale price and variable cost. Contribution margin ratio is the ratio of contribution to sales.
According to given data
Sales = $60,000
Contribution Margin = $60,000 x 35% = $21,000
Net Income = Contribution margin - Fixed costs = $21,000 - $25,000 = -$4,000
Advertisement Expense is a fixed cost.
There will be a loss of $4,000 added to overall net income.
