Solution-What is division residual income

What is division residual income

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Reference no: EM131796933

Shannon Pharmaceuticals has the following information available for one of its divisions in the current year:

Sales revenue $10 000 000
Average operating assets 4 000 000
Return on investment (ROI) 40%

The company requires each of its divisions to generate a minimum return of 30 per cent. What is this division's residual income?

$450 000
$600 000
$400 000
$700 000

Reference no: EM131796933

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What is division residual income

Reference no: EM131796933

Reference no: EM131796933

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