Refer to the data for Exercise 1324. Assume that the companys minimum desired rate of return on

Question:

Refer to the data for Exercise 13–24. Assume that the company’s minimum desired rate of return on invested capital is 11 percent.

In Exercise 13–24.

Income..................................................................................$ 10,000,000

Sales revenue........................................................................ 125,000,000

Average invested capital..................................................... 50,000,000


Required:

Compute Pensacola Division’s residual income for the year.


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