Answer:
$114,000
Explanation:
The computation of the residual income is shown below:
As we know that
Residual Income = Net operating Income - Average Operating assets × Required rate of return
where,
Net Operating Income is
= Sales Revenue - Variable Costs - Fixed Costs
= $500,000 - $300,000 - $50,000
= $150,000
And,
Average operating Assets is
= Net Operating Income ÷ Return on Investment
= $150,000 ÷ 0.25
= $600,000
So, the residual income is
= $150,000 - $600,000 × 6%
= $150,000 - $36,000
= $114,000
A work breakdown structure must be decomposed at least four levels in order to be effective- FALSE
By adopting task breaking, a popular productivity technique, workload can be made more reasonable and approachable. The instrument used to apply this method to projects is the Work Breakdown Structure (WBS), one of the important project management papers. To ensure that project plans are in sync, it does it on its own by combining size, cost, and schedule baselines.
A Work Breakdown structure is used to graphically, hierarchically, and deliverable-focused decompose a project (WBS). Project managers can use it to break down the focus of their operations and view all the tasks required to complete them, making it a helpful diagram.
To learn more about Work Breakdown structure click here:
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Answer:
$93,750
Explanation:
Contribution margin=15-(5+3+3)=4
Fixed Costs=$60,000+$40,000=$100,000
Break even point in units=$100,000/4=25,000
Break even point in $=25,000/(4/15)=$93,750