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2 years ago

Forchen, Inc., provided the following information for two of its divisions for last year:

Business

1 answer:

Ede4ka [16]2 years ago

3 0

Answer:

Forchen, Inc.

a. Residual income for the Small Appliances Division:

$2,218,880

b. Residual income for the Cleaning Products Division:

$788,800

Explanation:

a) Data and Calculations:

Small Appliances Cleaning Products

Division Division

Sales $34,670,000 $31,320,000

Operating income 2,773,600 1,252,800

Operating assets, January 1 6,394,000 5,600,000

Operating assets, December 31 7,474,000 6,000,000

Average operating assets 6,934,000 5,800,000

Rate of return (8%) 554,720 464,000

Residual income 2,218,880 788,800

b) The rate of return of 8% is computed on the average operating assets. The residual income is the difference between the operating income and the minimum rate of return.

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Ronch [10]

They will pay net $229,030 after paying a 7.5% commission to their broker.

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Commissions are a type of variable-pay compensation for provided services or sold goods.
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For instance, when offering significant discounts, commissions might be decreased.
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<h3>Calculation of net payment:</h3>

= 100% - 7.5%

= 92.5%

= $247,600 x 92.5%

= $229,030

Hence, they will pay net $229,030 after paying a 7.5% commission to their broker.

Learn more about commision here:

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1 year ago

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3 years ago

Incite Co. has a 30 percent tax rate. Its total interest payment for the year just ended was $43.4 million. What is the interest

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Explanation:

Given that,

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3 years ago

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2 years ago

A common error made when solving a future value of an annuity problem is: Multiple Choice Using factor tables to help solve the

ivanzaharov [21]

Answer:

Multiplying the annual deposit and the number of years before calculating the problem.

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An annuity can be defined as a sequence of payment that is typically made at equal intervals i.e at specific period of time.

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