Compute residual income for the division

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Question - Our Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets.

Required -

1. Compute residual income for the division?

2. Compute the division profit margin?

3. Compute the investment turnover?

Reference no: EM133076130

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