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1. Please use the information below to calculate the residual income for Divisions A and B, assuming that the companys minimum rate of return is
1. Please use the information below to calculate the residual income for Divisions A and B, assuming that the companys minimum rate of return is 15 percent.
Sales | Income from Operations | Invested Assets | |
Division A | $500,000 | $ 90,000 | $400,000 |
Division B | 800,000 | 144,000 | 600,000 |
2. What are the four components of the balanced scorecard and what purpose do they serve? Would you say they lead to a mostly financial or nonfinancial analysis?
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