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What is Grumbles residual income

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Question - Bumble Company has two divisions, Grumble and Humble. Bumble's required rate of return on capital is 11 percent. Grumble has a 25% sales margin, 20% ROI, and income of $200,000. What is Grumble's residual income?

a. $88,000.

b. $112,000.

c. $156,000.

d. $90,000.

e. Cannot be determined based on the data presented

Reference no: EM132482877

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