Edinger Industries is a division of a major corporation.The following data are for the latest year of operations:$$\begin{array} { | l | r | }
\hline \text { Sales } & \$ 20,760,000 \
\hline \text { Net operating income } & \$ 2,563,480 \
\hline \text { Average operating assets } & \$ 6,000,000 \
\hline \begin{array} { l }
\text { The company's minimum required rate of } \
\text { return }
\end{array} & 16 \% \
\hline
\end{array}$$
Required:
What is the division's residual income?

Question

Edinger Industries is a division of a major corporation.The following data are for the latest year of operations:$$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 20,760,000 \
\hline \text { Net operating income } & \$ 2,563,480 \
\hline \text { Average operating assets } & \$ 6,000,000 \
\hline \begin{array} { l } 
\text { The company's minimum required rate of } \
\text { return }
\end{array} & 16 \% \
\hline
\end{array}$$ 
Required:
What is the division's residual income?

Quizplus · Accepted Answer

The Answer of Edinger Industries is a division of a major corporation.The following data are for the latest year of operations:$$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 20,760,000 \
\hline \text { Net operating income } & \$ 2,563,480 \
\hline \text { Average operating assets } & \$ 6,000,000 \
\hline \begin{array} { l } 
\text { The company's minimum required rate of } \
\text { return }
\end{array} & 16 \% \
\hline
\end{array}$$ 
Required:
What is the division's residual income?

Edinger Industries Is a Division of a Major Corporation Required: What Is the Division's Residual Income

Edinger Industries Is a Division of a Major Corporation Required:
What Is the Division's Residual Income