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Dear ACCA Tutor
Here’s my residual income question:
There are two divisions with the following performance for the current year.
Division X Y
Investment ($m) 10 30
Controllable profit 2 3
Required rate of return 15%
Calculate the Residual Income of each division.
If you want me to answer you must ask in the Ask the Tutor Forum – this forum is for students to help each other.
However for this question you must watch the free lecture on divisional performance where it is explained how to calculate the RI.
Thank you Sir, appreciate it.
I will check out the video on RI.
You are welcome 🙂