Estes Company has assembled the following data for its divisions for the past year: Average operating assets Sales.............. Net operating income Turnover Division A Division B $500,000 ? ? $520,000 $100,000 $20,300 1.25 4 ? 3.9% Minimum required rate of return 14% ? ? $6,000 Margin.... Residual income Division B's average operating assets is: $81,200 $2,080,000 $1,333,333 $130,000
Estes Company has assembled the following data for its divisions for the past year: Average operating assets Sales.............. Net operating income Turnover Division A Division B $500,000 ? ? $520,000 $100,000 $20,300 1.25 4 ? 3.9% Minimum required rate of return 14% ? ? $6,000 Margin.... Residual income Division B's average operating assets is: $81,200 $2,080,000 $1,333,333 $130,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 11E: The operating income and the amount of invested assets in each division of Conley Industries are as...
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