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Question 21

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Use the information below to answer the following question(s) .Berger Publishing has two divisions which operate autonomously.Their results for the past year were as follows:
Use the information below to answer the following question(s) .Berger Publishing has two divisions which operate autonomously.Their results for the past year were as follows:    The company's desired rate of return is 15%. -What are the respective residual incomes for the Toronto and Vancouver divisions? A) $975,000; $1,125,000 B) $1,025,000; $1,125,000 C) $1,025,000; $2,375,000 D) $2,375,000; $1,025,000 E) $1,075,000; $1,125,000 The company's desired rate of return is 15%.
-What are the respective residual incomes for the Toronto and Vancouver divisions?


A) $975,000; $1,125,000
B) $1,025,000; $1,125,000
C) $1,025,000; $2,375,000
D) $2,375,000; $1,025,000
E) $1,075,000; $1,125,000

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