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sleet_krkn [62]
3 years ago
13

Quincy corp. earned controllable margin of $500,000 on sales of $6,400,000. the division had average operating assets of $5,200,

000. the company requires a return on investment of at least 8%. how much is residual income
Business
1 answer:
kondor19780726 [428]3 years ago
8 0

RI = Operating income - (Minimum required rate of return x Operating assets)  
RI = 500,000 - (0.08 x 5,200,000)  
RI = 84,000  
Residual income is $84,000
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