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Question:Hello. I need some help and direction understanding how to complete the following..... RDI and Residual Income Misteree Books manufactures both paperback and hardback books.

Question:Hello. I need some help and direction understanding how to complete the following.....

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RDI and Residual Income Misteree Books manufactures both paperback and hardback books. The information for two of the divisions follows: Printing Division Binding Division Average operating assets 5 500,000 5 550,000 Contribution margin 130,000 350,000 5 5 Operating income 5 110,000 5 180,000 5 5 Balm 350,000 1,125,000 Weighted-ave rage cost of capital 25% 1595 Misteree Books is subject to a 3595 tax rate and has a target ROI of 20%. Complete the following: 1. For each division, calculate the following: a. Return on sales b. Doerating investment turnover c. RDI cl. Residual income 1. Discuss the advantage and disadvantage of using residual income as opposed to R0| as an investment center performance measure. [Be thorough in vour discussion.)

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