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King Corporation has sales revenue of $1,560,000 resulting in net operating income of $109,200. Average invested assets total $780,000, and the hurdle rate is 6%.
King Corporation has sales revenue of $1,560,000 resulting in net operating income of $109,200. Average invested assets total $780,000, and the hurdle rate is 6%. Calculate the residual income if sales increase by 10% and the profit margin and invested assets remain constant.
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