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Residual income are giving me some trouble Campbell Home Maintenance Company earned operating income of $7,188,000 on operating assets of $59,900,000 during Year 2. The

Residual income are giving me some trouble

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Campbell Home Maintenance Company earned operating income of $7,188,000 on operating assets of $59,900,000 during Year 2. The Tree Cutting Division earned $1,213,620 on operating assets of $6,780,000. Campbell has offered the Tree Cutting Division $2,120,000 of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to $415,520. Campbell has a desired return on investment (ROI) of 10.00 percent. Required a. Calculate the return on investment for Campbell, the Tree Cutting Division, and the additional investment opportunity. b. Calculate the residual income for Campbell, the Tree Cutting Division, and the additional investment opportunity. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the residual income for Campbell, the Tree Cutting Division, and the additional investment opportunity. Residual Income Campbell Home Maintenance Company Tree Cutting Division Additional investment opportunity

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