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Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,130,000; sales of $4,555,000; cost of
Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,130,000; sales of $4,555,000; cost of goods sold of $2,580,000; and operating expenses of $1,402,000. Assume a target income of 9% of average invested assets. Compute residual income for the division: $158,800. $177,750. $51,570. $201,300. $211,300.
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