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Assume that income from operations amounts to $250,000 and top management has established 13% as the minimum rate of return on divisional assets totaling $1,000,000.
Assume that income from operations amounts to $250,000 and top management has established 13% as the minimum rate of return on divisional assets totaling $1,000,000. The residual income for the division is $250,000 $130,000 $120,000 $80,000
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