Two investment centers at Marshman Corporation have the
following current-year income and asset data:
Investment Center A
Investment Center B
Investment center income
$
425,000
$
535,000
Investment center average invested assets
$
2,600,000
$
2,050,000
The return on investment (ROI) for Investment Center A is:
Multiple Choice
598.30%
24.50%
16.35%
40.00
19.50
Carter Company reported the following financial numbers for one
of its divisions for the year; average total assets of $4,250,000;
sales of $4,675,000; cost of goods sold of $2,700,000; and
operating expenses of $1,522,000. Assume a target income of 9% of
average invested assets. Compute residual income for the
division:
Multiple Choice
$40,770.
$28,000.
$70,500.
$80,500.
$177,750.