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Evaluate: The Required Rate of Return

Question: The Consumer Products Division of Goich Corporation had average operating assets of $782,000 and a net operating income of $89,300 in May. The minimum required rate of return for performance evaluation purposes is 9%. What was the Consumer Products Division's residual income in May?


Solution Summary

In a very brief, but concise solution, this response provides the necessary equation required to solve for residual income. All calculations are completed.