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Determine the residual income for the manufacturing division

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Reference no: EM132663092

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

Revenues$650,000

Operating expenses$400,000

Service department charges$ 95,000

Invested assets$600,000

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

Reference no: EM132663092

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