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Exhibit 1 1 - 3 Dillon Company has the following information available for one of its divisions: Average operating assets $ 4 , 0 0

Exhibit 11-3
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?

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