Reef Corp. has revenues of $500,000 resulting in an operating income of $54,000. Invested assets total $600,000, and the cost of capital is 6%. Calculate the increase in residual income if sales increase by 10% and the profit margin and invested assets remain the same.
A. $0
B. $5,400
C. $24,000
D. $7,500
Answer: B
You might also like to view...
_______ are organizations of employees formed to protect and advance their members' interests by bargaining with management over job-related issues.
A. Mediation firms B. Right-to-work groups C. COLA organizations D. Arbitration associations E. Labor unions
One study on decision-making reported that decisions that used participation to foster implementation succeeded more than ______.
A. 80% of the time B. 70% of the time C. 50% of the time D. 90% of the time
Recognition and Matching are examples of:
a. input-oriented principles. b. output-oriented principles. c. constraining principles. d. both a and c.
Research reported in the Harvard Business Review indicates that it is very difficult to build customer loyalty if a firm is selling only the ________ product
A) generic B) expected C) potential D) value-added E) sales