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Residual Income The Orlon Division of Mondragon Company had operating income last year of $112,600 and average operating assets of $720,000. Mondragon's minimum acceptable rate
Residual Income The Orlon Division of Mondragon Company had operating income last year of $112,600 and average operating assets of $720,000. Mondragon's minimum acceptable rate of return is 5%. Required: 1. Calculate the residual income for the Orlon Division. Round your answer to the nearest dollar. Residual income \$ 2. Was the ROI for the Orlon Division greater than, less than, or equal to 5% ? Greater than 5\% Less than 5% Equal to 5%
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