Computation of a residual income

Reference no: EM1311441

A corporation has provided the following data-

Return on investment (ROI)	15%
Sales	$120,000
Average operating assets	$60,000
Minimum required rate of return	12%
Margin on sales	7.5%

The corporation's residual income is-

a) $1,800

b) $5,400

c) $2,700

d) $3,600

Reference no: EM1311441

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