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Acme Company has two divisions, East Division and West Division. During the current year, the East Division has sales of $ 9 0 0 ,

Acme Company has two divisions, East Division and West Division. During the current year, the East Division has sales of $900,000, a turnover of 1.50, a return on investment of 12%, and a minimum required rate of return of 9.5%. What is the East Divisions residual income for the year?
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$12,000
$13,500
$15,000
$18,000

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