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Hi! Do we include the allocated common cost in our NOI when calculating RI? 4. The Keystone Company has three divisions: A, B, and C.

image text in transcribedHi! Do we include the allocated common cost in our NOI when calculating RI?
4. The Keystone Company has three divisions: A, B, and C. Assume the following data for Division A for March: Sales Traceable fixed costs Allocated common fixed costs Average operating assets Minimum required return $1,200,000 $600,000 $120,000 $60,000 $2,000,000 J 5% How much is Division A's residual income? 29

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