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Given the following data: Return on investment 25% Turnover 2.5 Margin 10% Sales $100,000 Average operating assets $40,000 Minimum required rate of return 18% The
Given the following data:
Return on investment | 25% |
Turnover | 2.5 |
Margin | 10% |
Sales | $100,000 |
Average operating assets | $40,000 |
Minimum required rate of return | 18% |
The residual income would be:
$2,800
$0
$6,000
$8,000
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