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Reefwear Sandals Corp. makes amphibious sandals for windsurfers. The company has revenues of $530,000 resulting in an operating income of $57,240. Invested assets total $660,000,
Reefwear Sandals Corp. makes amphibious sandals for windsurfers. The company has revenues of $530,000 resulting in an operating income of $57,240. Invested assets total $660,000, and 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. Multiple Choice $5,724 0 $25,296 0 $0 $0 0 $7,824
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