Economics · Performance Measurement
In the last year, a division's controllable return on investment (ROI) was 25% and its controllable profit was $80,000. The cost of finance appropriate to the division was 18% per year. What was the division's controllable residual income in the last year?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$76,400
- 2$74,400
- 3$22,400✓
- 4$5,600
Correct answer
$22,400
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