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The following information is related to the current operation of Kenanga Branch. Operating income 5 , 0 0 0 , 0 0 0 Sales revenue
The following information is related to the current operation of Kenanga Branch.
Operating income
Sales revenue
Average operating asset
Average balance in current liabilities
The management of the company has decided that the minimum return required is percent.
Residual income is another approach that can be used to measure performance of an investment centre. Define residual income and determine the residual income for Kenanga Branch.
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