Assume that divisional operating income amounts to $202,000 and top management has established 14 s the minimum return on divisional assets totaling $1,185,000. the residual income for the division is:__________

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09-09-2022
Business

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Assume that divisional operating income amounts to $202,000 and top management has established 14 s the minimum return on divisional assets totaling $1,185,000. the residual income for the division is:__________

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khuranashilpa76 khuranashilpa76 · Answer 1 · 2022-09-13T18:35:06+02:00

The term “income” generally refers to the amount of money, property, and other transfers of value received over a set period of time in exchange for services or products. There is no single, standard definition: income is defined according to the context in which the concept is used.

Residual Income for the division

= operating income - required return on operating assets

= $203000 - $1192000 x 14%

= $36120

The definition of income is the amount of money received by a person, group, or company during a certain period of time. An example of an income is a $70,000 a year salary.

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