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A divisional manager receives a bonus based on 10% of the residual income from the division. During the current year, the division reported revenues of
A divisional manager receives a bonus based on 10% of the residual income from the division. During the current year, the division reported revenues of $1,000,000 and expenses of $500,000. The division had $2,000,000 in average operating assets. The minimum required rate of return for the division was 15%. What was the amount of the manager's bonus?
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