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The following data are available for the South Division of Redride Products, Inc. and the single product it makes: Unit selling price: 20 Variable cost
The following data are available for the South Division of Redride Products, Inc. and the single product it makes:
Unit selling price: 20
Variable cost per unit: 12
Annual fixed cost: 280,000
Average operating assets: 1,500,000
If South wants a residual income of $50,000 and the minimum required rate of return is 10%, the annual turnover will have to be:
A- 0.32 B- 0.80 C- 1.25 D- 1.50
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