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Question - Division 1-A2 of JPT, Inc. reported the following information during 2024:
Selling price per unit $25
Variable costs per unit $7
Minimum required rate of return 16%
Fixed costs $148,500
Units sold 18,000
Part A) Calculate the residual income reported by Division 1-A2 in 2024.
Part B) Calculate the number of units Division 1-A2 needed to sell in 2024 in order to have a margin equal to 27%.
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