THIS IS A PROBLEM SHOW SOLUTION AND ANSWER 76. James Webb is the general manager of the Industrial Product Division, and his perfor-mance is measured using the residual income method. Webb is reviewing the followingforecasted information for his division for next year: Amount(thousands)P 1,80030,00017,200CategoryWorking capitalRevenuePlant and equipmentIf the imputed charge is charge is 15% and Webb wants to achieve a residual incometarget of P2,000,000, what will costs have to be in order to achieve the target?P 9,000,000b. P10,800,000C. P25,150,000d. P25,690,000a.(ста)

Introduction:- The following formulas used to calculate as follows under:- Residual income = Net…

If the imputed charge is charge is 15% and Webb wants to achieve a residu target of P2,000,000, what will costs have to be in order to achieve the target P 9,000,000 b. P10,800,000 а. С. P25,150,000 d. P25,690,000

If the imputed charge is charge is 15% and Webb wants to achieve a residu target of P2,000,000, what will costs have to be in order to achieve the target P 9,000,000 b. P10,800,000 а. С. P25,150,000 d. P25,690,000

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 18E: The following selected data pertain to the Argent Division for last year: Required: 1. How much is...

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Question

THIS IS A PROBLEM SHOW SOLUTION AND ANSWER

76. James Webb is the general manager of the Industrial Product Division, and his perfor-
mance is measured using the residual income method. Webb is reviewing the following
forecasted information for his division for next year:

Amount
(thousands)
P 1,800
30,000
17,200
Category
Working capital
Revenue
Plant and equipment
If the imputed charge is charge is 15% and Webb wants to achieve a residual income
target of P2,000,000, what will costs have to be in order to achieve the target?
P 9,000,000
b. P10,800,000
C. P25,150,000
d. P25,690,000
a.
(ста)

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