Compute the residual income for each division. North Division West Division South Division SA $ 130000 225000 149000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Compute the residual income for each division.
North Division
West Division
South Division $
130000
225000
149000
Transcribed Image Text:Compute the residual income for each division. North Division West Division South Division $ 130000 225000 149000
Presented below is selected information for three regional divisions of Medina Company.
Contribution margin
Controllable margin
Average operating assets
Minimum rate of return.
North
$299,100
$140,000
$1,000,000
13 %
Divisions
West
$500,700
$360,000
$1,500,000
15 %
South
$400,200
$208,600
$1,490,000
10 %
Transcribed Image Text:Presented below is selected information for three regional divisions of Medina Company. Contribution margin Controllable margin Average operating assets Minimum rate of return. North $299,100 $140,000 $1,000,000 13 % Divisions West $500,700 $360,000 $1,500,000 15 % South $400,200 $208,600 $1,490,000 10 %
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