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What xyz residual income is

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Question 1: The XYZ Division of ABC Companies currently reports a profit of $3.6 million. Divisional invested capital totals $9.5 million; the required rate is 12%. On the basis of this information, XYZ's residual income is:

Option 1: $2,460,000.

Option 2: $1,140,000.

Option 3: $432,000.

Option 4: some other amount.

Option 5: $708,000.

Reference no: EM132882788

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