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What is the divisions residual income

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Reference no: EM131783132

Problem

Ash Wares is a division of a major corporation. The following data are for the latest year of operations.

Sales$38,000,000
Net Operating Income$2,800,000
Average Operating Assets$15,000,000
The company's minimum required rate of return20%

Required:
i. What is the division's margin?
ii. What is the division's turnover?
iii. What is the division's ROI?
iv. What is the division's residual income?

Reference no: EM131783132

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