Otterholt Corporation uses residual income to evaluate the performance of its divisions. The minimum required rate of return for performance evaluation purposes is 16%. The Games Division had average operating assets of $470,000 and net operating income of $72,900 in September.
Required:
What was the Games Division's residual income in September?

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The Answer of Otterholt Corporation uses residual income to evaluate the performance of its divisions. The minimum required rate of return for performance evaluation purposes is 16%. The Games Division had average operating assets of $470,000 and net operating income of $72,900 in September.
Required:
What was the Games Division's residual income in September?

Otterholt Corporation Uses Residual Income to Evaluate the Performance of Its