How much is the return on investment

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Reference no: EM132590348

The following selected data pertain to Balmoral Co.'s Beam Division for 2018:

Sales                       $1,000,000

Variable costs             600,000

Fixed costs                100,000

Average invested capital 200,000

Minimum required rate of return 15%

Question 1. How much is the residual income?

Question 2. How much is the return on investment?

Reference no: EM132590348

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