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    Financial and Managerial Accounting
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    Exam 24: Responsibility Accounting and Performance Evaluation
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    Sun IncHas Average Total Assets of $500,000
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Sun IncHas Average Total Assets of $500,000

Question 40

Question 40

Multiple Choice

Sun Inc.has average total assets of $500,000.The annual operating income of the company is $100,000.The target rate of return for the company is 18%.Calculate the residual income (RI) .


A) $90,000
B) $400,000
C) $25,000
D) $10,000

Correct Answer:

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