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Far Sight is a division of a major corporation. The following data are for the latest year of operations: Sales $24,480,000 Net operating Income $1,738,080

Far Sight is a division of a major corporation. The following data are for the latest year of operations:

Sales

$24,480,000

Net operating Income

$1,738,080

Average operating assets

$6,000,000

The company's minimum required rate of return

16%

Required:

a. What is the division's return on investment (ROI)?

b. What is the division's residual income?

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