If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?

Related Mcqs:

1. The number of units, must be sold to earn targeted operating income are calculated by dividing the total fixed cost operating income and ____________?

   A. marginal cost per unit
   B. variable cost per unit
   C. fixed cost per unit
   D. contribution margin per unit

2. If total production is 25000 units and target annual operating income is $300000, then target operating income per unit would be ____________?

   A. $15
   B. $12
   C. $16
   D. $18

3. If the invested capital is $150000 and target rate of return on investment is 16%, then the targeted annual operating income would be ___________?

   A. $27,000
   B. $26,000
   C. $24,000
   D. $25,000

4. The target operating income is multiplied to tax rate and then subtracted from target operating income to calculate _____________?

   A. target net cost
   B. target net income
   C. target net gain
   D. target net loss

5. The rupee amount for required return of investment is subtracted from income to calculate _____________?

   A. net income
   B. after tax income
   C. residual income
   D. operating income

6. The rate of required return to cover the risk of investment, in absence of inflation is classified as ____________?

   A. real rate of return
   B. required rate of return
   C. nominal rate of return
   D. none of above

7. An investment is multiplied to required rate of return, to calculate: _____________?

   A. congruent cost of investment
   B. transfer cost of investment
   C. operating cost of investment
   D. imputed cost of investment

8. In operating income strategic analysis, a component which measures the change in operating income attributed to the change in output quantity is classified as ________?

   A. internal process component
   B. growth component
   C. price recovery component
   D. productivity component

9. In operating income strategic analysis, the strategic component which measures change in operating income, attributed for change in price of outputs and inputs is classified as __________?

   A. internal process component
   B. growth component
   C. price recovery component
   D. productivity component

10. If target operating income is $38000, contribution margin per unit is $400, then the number of units must be sold to earn targeted operating income will be ___________?

    A. 65 units
    B. 75 units
    C. 95 units
    D. 85 units