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Kalu Company, a national manufacturer of lawn mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional ← information was available for the past year. View the information. Management has a 25% target rate of retum for each division. Calculate each division's RI. Interpret your results. First, select the formula to calculate residual income (R). Residual income Operating income (Target rate of return Average total assets) Residential division's RI Professional division's Ri Both divisions are Neither division is exceeding management's expectations. Only the professional division is Only the residential division is Information Residential Professional Net Sales Revenue Operating Income Average Total Assets 580,000 $ 184,000 10,720 $ 159.360 384,000 1.370.000 Print -X Done

Kalu Company, a national manufacturer of lawn mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional ← information was available for the past year. View the information. Management has a 25% target rate of retum for each division. Calculate each division's RI. Interpret your results. First, select the formula to calculate residual income (R). Residual income Operating income (Target rate of return Average total assets) Residential division's RI Professional division's Ri Both divisions are Neither division is exceeding management's expectations. Only the professional division is Only the residential division is Information Residential Professional Net Sales Revenue Operating Income Average Total Assets 580,000 $ 184,000 10,720 $ 159.360 384,000 1.370.000 Print -X Done

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← Kalu Company, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year View the information Management has a 25% target rate of retum for each division. Calculate each division's RI. Interpret your results. First, select the formula to calculate residual income (RI). Residual income Operating income (Target rate of return Average total assets) Residential division's RI Professional division's Ri Both divisions are exceeding management's expectations. Neither division is Only the professional division is Only the residential division is COT Information Residential Professional Net Sales Revenue $ 580,000 5 1.170.000 Print Operating Income Average Total Assets 60,720 $ 184,000 159,360 384,000 I Done X
Transcribed Image Text:← Kalu Company, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year View the information Management has a 25% target rate of retum for each division. Calculate each division's RI. Interpret your results. First, select the formula to calculate residual income (RI). Residual income Operating income (Target rate of return Average total assets) Residential division's RI Professional division's Ri Both divisions are exceeding management's expectations. Neither division is Only the professional division is Only the residential division is COT Information Residential Professional Net Sales Revenue $ 580,000 5 1.170.000 Print Operating Income Average Total Assets 60,720 $ 184,000 159,360 384,000 I Done X
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