ROI, Residual IncomeThe following selected data pertain to the Argent Division for last year:Sales $1,000,000Variable costs $624,000Traceable fixed costs $100,000Average invested capital $1,500,000Imputed interest rate 15% Required:1. How much is the residual income?2. How much is the return on investment? (Rounded to four significant digits.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ROI, Residual Income
The following selected data pertain to the Argent Division for last year:
Sales $1,000,000
Variable costs $624,000
Traceable fixed costs $100,000
Average invested capital $1,500,000
Imputed interest rate 15%

Required:
1. How much is the residual income?
2. How much is the return on investment? (Rounded to four significant digits.)

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