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The Avila Division of Maldonado Company had operating income last year of $112,800 and average operating assets of $710,000. Maldonado's minimum acceptable rate of return
The Avila Division of Maldonado Company had operating income last year of $112,800 and average operating assets of $710,000. Maldonado's minimum acceptable rate of return is 5%.
Required:
1. Calculate the residual income for the Avila Division. Round your answer to the nearest dollar. Residual income $
2. Was the ROI for the Avila Division greater than, less than, or equal to 5%?
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