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Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year:
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: Operating income Operating assets Retail Division Wholesale Division $ 2,680,000 $ 6,180,000 $17,800,000 $37,800,000 Terra Company has set a target return on investment (ROI) of 14% for both divisions. Which of the following statements is accurate? Multiple Choice Residual income for the wholesale division was $188,000. Residual income for the wholesale division was $888,000. Residual income for the retail division was $888,000. None of these answers are correct
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