Travel Company has three segments: Air, Land, and Sea. Data concerning income and investment follow: AirLandSea Segment
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Question:
Travel Company has three segments: Air, Land, and Sea. Data concerning income and investment follow:
AirLandSea
Segment income$ 43,200$ 86,400$ 115,200
Assets directly used by and identified with the segment(Investments)288,000576,0001,296,000
Assuming that the cost of capital on investment is 12% , calculate the residual income of
each of the segments.
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