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The Eastern Division of XYZ, Inc., has operating income of $32,000 on sales revenue of $320,000. Divisional operating assets are $160,000 and management of XYZ
The Eastern Division of XYZ, Inc., has operating income of $32,000 on sales revenue of $320,000. Divisional operating assets are $160,000 and management of XYZ has determined that a minimum return of 10% should be expected from all investments. (a.) Using the DuPont model, calculate The Eastern Divisions margin, turnover, and ROI. (b.) Calculate the Eastern Divisions residual income.
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