Determine the residual income for the manufacturing division

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Reference no: EM132666330

Paprus Inc. provided the following information for its manufacturing division:

Revenues $650,000

Operating expenses $400,000

Service department charges$ 95,000

Invested assets$600,000

Problem 1: Assume that Paprus Inc. has established 20% as the minimum acceptable return on divisional assets. Determine the residual income for the manufacturing division.

a. $130,000

b. $35,000

c. $155,000

d. $43,500

Reference no: EM132666330

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