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Blue Lakes Company has two divisions, the Minne Division and the Sota Division. Last year, the Minne Division earned $66,000 using average operating assets of
Blue Lakes Company has two divisions, the Minne Division and the Sota Division. Last year, the Minne Division earned $66,000 using average operating assets of $550,000. Last year, the Sota Division earned $260,000 using average operating assets of $2,000,000. Minimum required rate of return for Blue Lakes is 9%. A. B. For the Minne Division, residual income is For the Sota Division, residual income is Now assume that the minimum required rate of return for Blue Lakes is 12% c. D. For the Minne Division, residual income is For the Sota Division, residual income is
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