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Championship Corporation’s three divisions had the following operating data during 20X1. Jordan Pippen Rodman Total assets $450,000 $320,000 $220,000 Variable costs 90,000 135,000 50,000 Revenue 200,000 250,000 170,000 Controllable fixed costs 40,000 60,000 50,000 Compute residual income for JORDAN. The required minimum rate of return is 16%. A. Negative $2,000 B. Positive $2,800 C. Positive $3,800 D. Negative $4,800

Championship Corporation’s three divisions had the following operating data during 20X1. Jordan Pippen Rodman Total assets $450,000 $320,000 $220,000 Variable costs 90,000 135,000 50,000 Revenue 200,000 250,000 170,000 Controllable fixed costs 40,000 60,000 50,000 Compute residual income for JORDAN. The required minimum rate of return is 16%. A. Negative $2,000 B. Positive $2,800 C. Positive $3,800 D. Negative $4,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Championship Corporation’s three divisions had the following operating data during 20X1.

Jordan Pippen Rodman

Total assets $450,000 $320,000 $220,000

Variable costs 90,000 135,000 50,000

Revenue 200,000 250,000 170,000

Controllable fixed costs 40,000 60,000 50,000

Compute residual income for JORDAN. The required minimum rate of return is 16%.

A. Negative $2,000

B. Positive $2,800

C. Positive $3,800

D. Negative $4,800

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