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Quincy corp. earned controllable margin of $500,000 on sales of $6,400,000. the division had average operating assets of $5,200,000. the company requires a return on investment of at least 8%. how much is residual income

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W0lf93

RI = Operating income - (Minimum required rate of return x Operating assets)  
RI = 500,000 - (0.08 x 5,200,000)  
RI = 84,000  
Residual income is $84,000

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