Joseph Company reported the following information for the current year: The company's operating income was:
$$\begin{array} { |l | r| }
\hline\text { Sales } & \$ 787,000 \
\hline \text { Average Operating Assets } & \$ 375,000 \
\hline \text { Desired ROI } & 12 \% \
\hline\text { Residual Income } & \$ 11,250 \
\hline
\end{array}$$
A)$94,440.
B)$56,250.
C)$45,000.
D)$33,750.

Question

Joseph Company reported the following information for the current year: The company's operating income was:
$$\begin{array} { |l | r| } 
\hline\text { Sales } & \$ 787,000 \
\hline \text { Average Operating Assets } & \$ 375,000 \
\hline \text { Desired ROI } & 12 \% \
\hline\text { Residual Income } & \$ 11,250 \
\hline
\end{array}$$
A)$94,440.
B)$56,250.
C)$45,000.
D)$33,750.

Quizplus · Accepted Answer

The Answer of Joseph Company reported the following information for the current year: The company's operating income was:
$$\begin{array} { |l | r| } 
\hline\text { Sales } & \$ 787,000 \
\hline \text { Average Operating Assets } & \$ 375,000 \
\hline \text { Desired ROI } & 12 \% \
\hline\text { Residual Income } & \$ 11,250 \
\hline
\end{array}$$
A)$94,440.
B)$56,250.
C)$45,000.
D)$33,750.

Joseph Company Reported the Following Information for the Current Year