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The following results pertain to an investment center. Sales $ 1,318,800 Variable costs 720,000 Traceable fixed costs 84,000 Average investment 990,000 Divisional cost of capital
The following results pertain to an investment center.
| Sales | $ | 1,318,800 | |
| Variable costs | 720,000 | ||
| Traceable fixed costs | 84,000 | ||
| Average investment | 990,000 | ||
| Divisional cost of capital (discount rate) | 10 | % | |
How much is the residual income (RI) for this investment center?
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Introduction To Government And Not For Profit Accounting
Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch
6th Edition
0132366355, 978-0132366359
