A division of Soft Company has the following information for 2020: Average Operating assets P1, 800 , 000 Target rate of return 10% Residual income P270 , 000 What was the division's return on investment for the year ?

A division of Soft Company has the following information for 2020: Average Operating assets P1, 800 , 000 Target rate of return 10% Residual income P270 , 000 What was the division's return on investment for the year ?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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Question

4G
14:17 O P O
A YE2 KB/S
Vo). 0.10
62
00:11:00 Remaining
Fill in the Blank
A division of Soft Company has
the following information for
2020:
Average Operating assets P1,
800 , 000
Target rate of return 10%
Residual income P270 , 000
What was the division's return
on investment for the year ?
Answer:
25
%
14 of 17

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