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Pina, Inc. reports the following financial information. Average operating assets $2,948,200 Controllable margin $648,604 Mini
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Answer #1

Return on investment = controllable margin/Average operating assets

= 648604/2948200

= 22%

Residual income = Controllable margin - Required return

= 648604 - (2948200*7%)

= 442,230

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