Question: Refer to the data for Exercise 1324. Assume that the companys minimum desired rate of return on invested capital is 11 percent. In Exercise 1324.

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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