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Championship Corporation’s three divisions had the following operating data during 20X1. Jordan Pippen Rodman Total assets $450,000 $320,000 $220,000 Variable costs 90,000 135,000 50,000 Revenue 200,000 250,000 170,000 Controllable fixed costs 40,000 60,000 50,000 Compute residual income for JORDAN. The required minimum rate of return is 16%. A. Negative $2,000 B. Positive $2,800 C. Positive $3,800 D. Negative $4,800

Championship Corporation’s three divisions had the following operating data during 20X1. Jordan Pippen Rodman Total assets $450,000 $320,000 $220,000 Variable costs 90,000 135,000 50,000 Revenue 200,000 250,000 170,000 Controllable fixed costs 40,000 60,000 50,000 Compute residual income for JORDAN. The required minimum rate of return is 16%. A. Negative $2,000 B. Positive $2,800 C. Positive $3,800 D. Negative $4,800

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 2CE: Refer to Cornerstone Exercise 10.1. Forchen, Inc., requires an 8 percent minimum rate of return....
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Championship Corporation’s three divisions had the following operating data during 20X1.

Jordan Pippen Rodman

Total assets $450,000 $320,000 $220,000

Variable costs 90,000 135,000 50,000

Revenue 200,000 250,000 170,000

Controllable fixed costs 40,000 60,000 50,000

Compute residual income for JORDAN. The required minimum rate of return is 16%.

A. Negative $2,000

B. Positive $2,800

C. Positive $3,800

D. Negative $4,800

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