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Sousa Corporation Provides the Following Financial Information Calculate the Residual Income of Sousa Corporation

Question 52

Multiple Choice

Sousa Corporation provides the following financial information:  Minimum acceptable operating income $560,000 Average total assets $2,000,000 Operating income $715,000 Return on investment 36% Net sales $850,000\begin{array} { | l | r | } \hline \text { Minimum acceptable operating income } & \$ 560,000 \\\hline \text { Average total assets } & \$ 2,000,000 \\\hline \text { Operating income } & \$ 715,000 \\\hline \text { Return on investment } & 36 \% \\\hline \text { Net sales } & \$ 850,000 \\\hline\end{array} Calculate the residual income of Sousa Corporation.


A) $1,440,000
B) $290,000
C) $155,000
D) $554,125

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