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Question
Assume a target income of 12% of average invested assets. Compute residual income for each division.
Investment Center | Net Income | Average Assets | Return on Investment |
---|---|---|---|
Cameras and camcorder | $4,500,000 | $20,000,000 | _____% |
Phones and communications | 1,500,000 | 12,500,000 | _____ |
Computers and accessories | 800,000 | 10,000,000 | _____ |
Solution
VerifiedAnswered 10 months ago
Answered 10 months ago
Step 1
1 of 8In reference to QS 24-9, this exercise asks us to calculate the residual income of each of the investment centers.
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