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( Rules Match Fields Highlight Address Greeting Insert Merge la Update Labels Merge Fields Block Line Field- Write B Insert Fields Preview Results Find Recipient Check for Errors Morge Preview Results 8. (10 points) The Division A of Standard Products is planning its 2013 operating budget. Average operating assets of $1,600,000 will be used during in the division during the year and per-unit selling prices are expected to average $90. Variable costs of the division are budgeted at $400,000, while fixed costs are set at $240,000. The company's required rate of return for purposes of calculating residual income (RI) is 16%. Required: 1. Compute the sales volume (in units) necessary for Division A to achieve a 19% ROI in 2013. 2. The division manager receives a bonus of 40% of residual income (RI). What is the anticipated bonus for 2013 for the division manager, assuming she achieves the 19% ROI target specified in part (1) Required rate of return=1,600,000*19%- RI=304000 Total sales - RI+FC+VC 10+(400,000/
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