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The Parts Division of the Stein Corporation Had Average Operating

Question 68

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The Parts Division of the Stein Corporation had average operating assets of $150,000 and net operating income of $27,800 in March. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 17%.
Required:
What was the Parts Division's residual income in March?

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Net operating income $ 27,800
...

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