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Paprus Inc. provided the following information for its manufacturing division: Revenues $694,000 Operating expenses 430,000 Service department charges 91,600 Invested assets 589,000 Assume that Paprus
Paprus Inc. provided the following information for its manufacturing division:
Revenues | $694,000 |
Operating expenses | 430,000 |
Service department charges | 91,600 |
Invested assets | 589,000 |
Assume that Paprus Inc. has established 20% as the minimum acceptable return on divisional assets. Determine the residual income for the manufacturing division.
a. $242,300
b. $110,300
c. $146,200
d. $54,600
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