Residual Income Assignment
Avocado Company has an operating income of $142150 on revenues of 1,033.000 Average invested assets are $545.000, and Avocado Company has an 8% cost of capital. What is the return on investment? 0 19% Ова оо Avocado Company has an operating income of $105,000 on revenues of $1097000 Average invested assets are $506,000 and Avocado Company has an 8% cost of capital. What is the residual income? O $64,520 $122,240 $105,000 $17,240 Spice Company has two divisions.
Parsley and Sage. Parsley produces a unit that Sape could use in its production Sage currently is purchasing 50,000 units from an outside supplier for $50 Parsley is operating at less than full capacity and has variable costs of $27 per unit. The full cost to manufacture the unit is $38. Parsley currently sells 450.000 units at a selling price of $54. I an internal transfer is made, variable shipping and administrative costs of $2 per unit could be avoided. What would be the minimum transfer price? $25 $52 $27 536 Avocado Company has an operating income of $107,820 on revenues of $1797,000 Avenge invested assets are $599.000 and Avocado Company has a 9% cost of capital What is the investment over? O 3.00 O 1667 oo We were unable to transcribe this image. .