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    Residual Income

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    During 2008, Fing Co. reported sales of $1,800,000 and a return on investment of 7.5%. Unfortunately, Fing's profit margin of 5% left its net income 25% short of the required target for the year. What was Fing's residual income for 2008? PLEASE PROVIDE A BRIEF EXPLANATION.

    A. - $60,000
    B. - $30,000
    C. - $12,200
    D. - $ 1,200
    E. + $ 1,200.

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    https://brainmass.com/business/accounting/fings-residual-income-254049

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    Please see the response to your posting as below:

    Actual Net profit ...

    Solution Summary

    Solution shows calculations of residual Income.

    $2.19

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