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Calculate the Central Division residual income

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Question - The Central Division of AAA, Inc., has operating income of $64,000 on sales revenue of $640,000. Divisional operating assets are $320,000 and management of AAA has determined that a minimum return of 12% should be expected from all investments.

(a) Using the DuPont model, calculate the Central Division's margin, turnover, and ROI.

(b) Calculate the Central Division's residual income.

Reference no: EM132863829

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