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The owner of Denver Toy Manufacturing Company has recently expanded his business in order to add an additional product line. In addition to toys, the

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The owner of Denver Toy Manufacturing Company has recently expanded his business in order to add an additional product line. In addition to toys, the company now sells shirts. The company has a minimum rate of return of 11%. Toys Shirts Sales $600,000 $200,000Controllable margin 120,00010,000Average operating assets 900,000200,000 Compute the residual income for both investment centers.
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