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what is the concept of residual income? How is residual income determined? Sammy Company reported the following information for the current year: Sales $ 880,000

what is the concept of residual income? How is residual income determined?

Sammy Company reported the following information for the current year:

Sales	$ 880,000
Average operating assets	$ 475,000
Desired ROI	10%
Net income	$ 90,000

What is the company's residual income?

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