What was Koyohaus’ residual income last year? $15,000 $82,000 $67,000 $50,000 2. True or False: Based on Koyohaus’ residual income last year, Forster’s should acquire Koyohaus as a new investment. True False
Please use the following information for questions 1-4:
Koyohaus makes and sells designer houseplants. Last year, Koyohaus sold 2,500 plants and raked in ?$200,000 of sales. The firm’s average operating assets last year were $150,000. Information on Koyohaus’ operating costs are provided below:
Direct Materials: $20,000
Direct Labor: $60,000
Variable MOH: $10,000
Variable Selling and Admin: $3,000
Fixed MOH: $20,000
Fixed Selling and Admin: $5,000
Total Operating Expenses: $118,000
Further, Forster’s, a home improvement chain, is considering acquiring Koyohaus but would require a minimum rate of
- What was Koyohaus’ residual income last year?
- $15,000
- $82,000
- $67,000
- $50,000
2. True or False: Based on Koyohaus’ residual income last year, Forster’s should acquire Koyohaus as a new investment.
- True
- False
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