Calculate the residual income of each of the segments

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Question - Travel Company has three segments: Air, Land, and Sea. Data concerning income and investment follow:

 

Air

Land

Sea

Segment income

$43,200

$86,400

$115,200

Assets directly used by and identified with the segment (Investments)

288,000

576,000

1,296,000

Assuming that the cost of capital on investment is 12% , calculate the residual income of each of the segments.

Reference no: EM132425870

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