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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

  1. 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%

  2. The division's residual income is:

    A.

    $90,000

    B.

    $80,000

    C.

    $0

    D.

    $10,000

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