Which of these statements about use fees for a highway is best?
A) A flat rate results in lower use by most individuals.
B) A flat rate results in higher use by most individuals.
C) A flat rate has no impact on use by most individuals.
D) A fee based on congestion results in higher use by most individuals.
Answer: B
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Indicate whether the statement is true or false
Texas Company has established a target rate of return of 16% for all divisions. For the most recent year, San Marcos Division generated sales of $10,000,000 and expenses of $7,500,000 . Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000. Refer to Texas Company. In the most recent year, what was San Marcos Division's residual income?
a. $ 960,000 b. $1,380,000 c. $1,540,000 d. $1,700,000