Determine the April 20xx residual income for an investment center with the following information: $\begin{array}{lr}
\text { Operating income for the month ended April 30, 20xx } & \$ 14,900,000 \
\text { Assets at March 31, 20xx } & 10,200,000 \
\text { Assets at April 30, 20xx } & 13,150,000 \
\text { Desired ROI } & 49 \% \
\text { Actual ROI } & 60 \%
\end{array}$

Question

Quizplus · Accepted Answer

Residual income is calculated as the operating income of the investment center minus a minimum required return on investment (ROI) multiplied by the average operating assets of the investment center. The information provided does not include the given operating income, minimum required ROI or the average operating assets of the investment center, so the residual income cannot be calculated. Therefore, none of the given answer choices are accurate.

Determine the April 20xx Residual Income for an Investment Center