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Assume that Division Blue has achieved a yearly income from operations of $153,000 using $1,041,000 of invested assets. If maUse this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,058,000 in invested a

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Answer #1

Residual income = Income from operations - (Investment X Rate of return)

= $153,000 - ($1,041,000 X 12%)

= $28,080

Option. b

2)

Profit margin = Income from operations / Sales

= $202,000 / $1,229,000

= 16.4%

Option. b

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