The following selected data for BC Company for 2022: Sales P 2,000,000 Variable Costs 1,200,000 Traceable Fixed Costs 200,000 Average Invested Capital 400,000 Capital Charge 15% 1. The residual income amounted to? 2. Assuming the same information in the previous item, the return on investment percentage is?

The following selected data for BC Company for 2022: Sales P 2,000,000 Variable Costs 1,200,000 Traceable Fixed Costs 200,000 Average Invested Capital 400,000 Capital Charge 15% 1. The residual income amounted to? 2. Assuming the same information in the previous item, the return on investment percentage is?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following selected data for BC Company for 2022:

Sales P 2,000,000
Variable Costs 1,200,000
Traceable Fixed Costs 200,000
Average Invested Capital 400,000
Capital Charge 15%

1. The residual income amounted to?

2. Assuming the same information in the previous item, the return on investment percentage is?

Formula Formula ROI (%) = Net Income Principal Amount × 100

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