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Cornwall Company has two divisions, A and B. Information for each division is as follows: Net earnings for division Asset base for division Target rate

Cornwall Company has two divisions, A and B. Information for each division is as follows: Net earnings for division Asset base for division Target rate of return Margin Weighted average cost of capital What is the residual income for Division A? Oa. $15,000 Ob. $25,000 Oc. $40,000 Od. $28,000 A B $40,000 $260,000 $100,000 $1,200,000 15% 18% 10% 20% 12% 12%

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