Dillon Company has the following information available for one of its divisions: Average operating assets $4,000,000 Sales
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Question:
Dillon Company has the following information available for one of its divisions:
| Average operating assets | $4,000,000 |
| Sales | $4,800,000 |
| Return on investment (ROI) | 30% |
Refer to Exhibit 11-3. If Dillon's cost of capital is 25%, what is the division's residual income?
Group of answer choices
$ 200,000
$800,000
$440,000
$1,200,000
None of the answer choices is correct.
Expert Answer:
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