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The following data pertain to the Belt Division of Allen Corp: Sales $2,000,000 Average operating assets $500,000 Net operating income $100,000 Minimum required rate of
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The following data pertain to the Belt Division of Allen Corp:
Sales
$2,000,000
Average operating assets
$500,000
Net operating income
$100,000
Minimum required rate of return
18%
The divisions ROI (return on investment) is:
A. 25%
B. 20%
C. 5%
D. 2%
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The division's residual income is:
A. $90,000
B. $80,000
C. $0
D. $10,000
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