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James Webb is the general manager of the Industrial Product Division, and his performance is measured using the residual income (RI) method. Webb is

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James Webb is the general manager of the Industrial Product Division, and his performance is measured using the residual income (RI) method. Webb is reviewing the following forecasted information for his division for the coming year: Category Current assets (e.g., inventory) Revenue Plant and equipment (net book value) Amount (thousands) $ 1,800 30,000 17,200 If the imputed interest charge (.e, divisional cost of capital) is 15% and Webb wants to achieve an RI target of $2 million, what will costs have to be in order to achieve the target? ww Multiple Choice $9,000,000 $23,620,000 $10,800,000 $25,150,000 > < Prev 20 of 45 Next >

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