Howard Company provided the following selected information about its consumer products division for the current year: $$\begin{array} { l l }
\text { Desired ROI } & 12 \% \
\text { Net Income } & \$ 150,000 \
\text { Residual Income } & \$ 30,000
\end{array}$$ Based on this information,the division's investment amount was:
A) $250,000.
B) $1,000,000.
C) $1,500,000.
D) $1,250,000.

Question

Howard Company provided the following selected information about its consumer products division for the current year: $$\begin{array} { l l } 
\text { Desired ROI } & 12 \% \
\text { Net Income } & \$  150,000 \
\text { Residual Income } & \$ 30,000
\end{array}$$ Based on this information,the division's investment amount was:
A) $250,000.
B) $1,000,000.
C) $1,500,000.
D) $1,250,000.

Quizplus · Accepted Answer

The Answer of Howard Company provided the following selected information about its consumer products division for the current year: $$\begin{array} { l l } 
\text { Desired ROI } & 12 \% \
\text { Net Income } & \$  150,000 \
\text { Residual Income } & \$ 30,000
\end{array}$$ Based on this information,the division's investment amount was:
A) $250,000.
B) $1,000,000.
C) $1,500,000.
D) $1,250,000.