Knowledge Check East Division of Blue Spruce Anchors provided the following information: Contribution margin Controllable margin Average operating assets Minimum rate of return $890,000 $395,900 $2,140,000 9% Compute the return on investment and the residual income. (Round return on investment answer to two decimal places (e.g

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Knowledge Check
East Division of Blue Spruce Anchors provided the following information:
Contribution margin
Controllable margin
Average operating assets
Minimum rate of return
Return on investment
$890,000
$395,900
$2,140,000
Compute the return on investment and the residual income. (Round return on investment answer to two decimal places (e.g., 15.25%).)
Residual income
9 %
%
Transcribed Image Text:Knowledge Check East Division of Blue Spruce Anchors provided the following information: Contribution margin Controllable margin Average operating assets Minimum rate of return Return on investment $890,000 $395,900 $2,140,000 Compute the return on investment and the residual income. (Round return on investment answer to two decimal places (e.g., 15.25%).) Residual income 9 % %
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