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Avocado Company Has an Operating Income of $80,000 on Revenues

Question 58

Multiple Choice

Avocado Company has an operating income of $80,000 on revenues of $1,000,000.Average invested assets are $500,000 and Avocado Company has an 8% cost of capital.What is the residual income?


A) $100,000
B) $20,000
C) $120,000
D) $40,000

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