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Climax Corporation has a desired rate of return of 7.50 percent. William Tobin is in charge of one of Climaxs three investment centers. His center

Climax Corporation has a desired rate of return of 7.50 percent. William Tobin is in charge of one of Climaxs three investment centers. His center controlled operating assets of $4,000,000 that were used to earn $480,000 of operating income.

Required

Compute Mr. Tobins residual income.

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