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Assume that divisional operating income amounts to $325,000 and top management has established 10% as...

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Accounting

Assume that divisional operating income amounts to $325,000 and top management has established 10% as the minimum rate of return on divisional assets totaling $1,250,000. The residual income for the division is:

a.$200,000.

b.$0.

c.$292,500.

d.$125,000.

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