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

Howard Company Provided the Following Selected Information About Its Consumer