Question: Paprus Inc. provided the following information for its manufacturing division: Revenues $694,000 Operating expenses 430,000 Service department charges 91,600 Invested assets 589,000 Assume that Paprus

Paprus Inc. provided the following information for its manufacturing division:

Revenues $694,000
Operating expenses 430,000
Service department charges 91,600
Invested assets 589,000

Assume that Paprus Inc. has established 20% as the minimum acceptable return on divisional assets. Determine the residual income for the manufacturing division.

a. $242,300

b. $110,300

c. $146,200

d. $54,600

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