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Calculate residual income for this investment center

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Reference no: EM133183416

Question - Selected data from York Company's accounting records reveal the following:

Sales $700,000

Average investment $350,000

Operating income $50,000

Minimum rate of return 12%

Required -

1. Calculate return on investment (ROI) for this investment center {show separately the two major components of the ROI calculation).

2. Calculate residual income (RI) for this investment center.

3. Comment briefly the York's performance based on your calculations in 1 and 2.

Reference no: EM133183416

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