Question: Residual income indicates how ________. A. efficiently a division uses its financial leverage to generate sales and thereby profits B. much operating income the division

Residual income indicates how ________.

A. efficiently a division uses its financial leverage to generate sales and thereby profits

B. much operating income the division earns on every dollar of sales

C. much return a division generates on average assets

D. much extra operating income a division generates above the minimum acceptable level ( correct answer )

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