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Picard Corp. has revenues of $50,000 resulting in an operating income of $54,000. Invested assets total $600,000, the cost of capital is 6%. Calculate the

Picard Corp. has revenues of $50,000 resulting in an operating income of $54,000. Invested assets total $600,000, the cost of capital is 6%. Calculate the increase in residual income if sales increase by 10% and the profit margin and invested assets remain the same.

A. $5,400

B.$24,000

C. $0

D.$7,500

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