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Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate...

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Accounting

Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.26 percent. Selected operating data for the three divisions follow:

Peak View Grand
Sales revenue $ 330,000 $ 238,000 $ 309,000
Cost of goods sold 216,000 112,000 183,000
Miscellaneous operating expenses 37,000 35,000 36,000
Average invested assets 1,360,000 880,000 1,115,000

2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign. Round your answers to nearest whole dollar.)

image
Peak View Grand Residual Income (Loss)

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