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A Segment with an ROI of 30% Has a Profit

Question 1

Multiple Choice

A segment with an ROI of 30% has a profit of $84,000. The company's required rate of return on segment investments is 18%. The segment's residual income is


A) $50,400
B) $25,200
C) $26,712
D) $33,600

Correct Answer:

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