Division B had an ROI last year of 15%. The division's minimum required rate of return is
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Question:
Division B had an ROI last year of 15%. The division's minimum required rate of return is 10%. If the division's average operating assets last year were $450,000, then the division's residual income for last year was:
A)$67,500.
B)$22,500.
C)$37,500.
D)$45,000.
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