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  3. the avila division of maldonado company had operat

The Avila Division of Maldonado Company had operating income last year of $112,800 and average...

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Question

Accounting

The Avila Division of Maldonado Company had operating income last year of $112,800 and average operating assets of $710,000. Maldonado's minimum acceptable rate of return is 5%.

Required:

1. Calculate the residual income for the Avila Division. Round your answer to the nearest dollar. Residual income $

2. Was the ROI for the Avila Division greater than, less than, or equal to 5%?

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