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Iba Industries is a division of a major corporation. The following data are for the latest year of operations: Sales . . . . .
Iba Industries is a division of a major corporation. The following data are for the latest year of operations:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . $5,820,000
Net operating income . . . . . . . . . . . . . . $436,500
Avergae operating assets . . . . . . . . . . . $2,000,000
The companys minimum required rate of return . . . . . . . . . . . . . 18%
What is the divisions residual income?
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