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The following are selected data for the division for the consumer products of ABC Corp for 2020:       Sales                                            P 10,000,000       Average invested capital                4,000,000       Net Income                                       400,000       Cost of Capital                                        8% What is the amount of residual income for the division? P    80,000 P 200,000 P 320,000 P 400,000 Group of answer choices 1 2 3 4

The following are selected data for the division for the consumer products of ABC Corp for 2020:       Sales                                            P 10,000,000       Average invested capital                4,000,000       Net Income                                       400,000       Cost of Capital                                        8% What is the amount of residual income for the division? P    80,000 P 200,000 P 320,000 P 400,000 Group of answer choices 1 2 3 4

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 5BE: Residual income The Commercial Division of Galena Company has operating income of 12,680,000 and...
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The following are selected data for the division for the consumer products of ABC Corp for 2020:

      Sales                                            P 10,000,000

      Average invested capital                4,000,000

      Net Income                                       400,000

      Cost of Capital                                        8%

What is the amount of residual income for the division?

  1. P    80,000
  2. P 200,000
  3. P 320,000
  4. P 400,000
Group of answer choices
1
2
3
4
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