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Find what is the residual income for division c

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Reference no: EM132586114

The sales, income from operations, and invested assets for each division of Wren Company are as follows:

                         Sales            Income from Operations                Invested Assets

Division C      $5,000,000             $630,000                          $4,000,000

Division D          $6,800,000         $760,000                        $3,900,000

Division E          $3,750,000         $750,000                       $7,500,000

Management has established a minimum rate of return for invested assets of 10%.

Question 1: What is the Residual Income for Division C?

Question 2: What is the Residual Income for Division D?

Question 3: What is the Residual Income for Division E?

Reference no: EM132586114

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