Shannon Pharmaceuticals has the following information available for one of its divisions in the current year:
$\begin{array}{lr}
\text { Sales revenue} &\$10000000\
\text { Operating expenses } &4500000\
\text { Average operating assets} &4000000\
\end{array}$

The company requires each of its divisions to generate a minimum return of 30 per cent.What is this division's residual income?

Question

Shannon Pharmaceuticals has the following information available for one of its divisions in the current year:
$\begin{array}{lr}
  \text {  Sales revenue} &\$10000000\
 \text { Operating expenses } &4500000\
 \text {  Average operating assets} &4000000\
\end{array}$

The company requires each of its divisions to generate a minimum return of 30 per cent.What is this division's residual income?

Quizplus · Accepted Answer

The Answer of Shannon Pharmaceuticals has the following information available for one of its divisions in the current year:
$\begin{array}{lr}
  \text {  Sales revenue} &\$10000000\
 \text { Operating expenses } &4500000\
 \text {  Average operating assets} &4000000\
\end{array}$

The company requires each of its divisions to generate a minimum return of 30 per cent.What is this division's residual income?

Shannon Pharmaceuticals Has the Following Information Available for One of Its