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The owner of Oriole Toy Manufacturing Company has recently expanded his business in order to add an additional product line. In addition to toys, the company now sells shirts. The company has a minimum rate of return of 11%. Toys $605,000 Controllable margin 125,000 15,000 Average operating assets 905,000 214,000 Sales Compute the residual income for both investment centers. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45)) Residual Income $ Shirts $205,000 Toys (A $ Shirts

The owner of Oriole Toy Manufacturing Company has recently expanded his business in order to add an additional product line. In addition to toys, the company now sells shirts. The company has a minimum rate of return of 11%. Toys $605,000 Controllable margin 125,000 15,000 Average operating assets 905,000 214,000 Sales Compute the residual income for both investment centers. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45)) Residual Income $ Shirts $205,000 Toys (A $ Shirts

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The owner of Oriole Toy Manufacturing Company has recently expanded his business in order to add an additional product line. In addition to toys, the company now sells shirts. The company has a minimum rate of return of 11%. Sales Controllable margin Average operating assets Toys $605,000 125,000 905,000 Residual Income $ Compute the residual income for both investment centers. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Shirts $205,000 15,000 214,000 Toys $ Shirts
Transcribed Image Text:The owner of Oriole Toy Manufacturing Company has recently expanded his business in order to add an additional product line. In addition to toys, the company now sells shirts. The company has a minimum rate of return of 11%. Sales Controllable margin Average operating assets Toys $605,000 125,000 905,000 Residual Income $ Compute the residual income for both investment centers. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Shirts $205,000 15,000 214,000 Toys $ Shirts
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