The Nashville Division of Country Classics currently reports a profit of $3.6 million. Divisional invested capital totals $9.5 million; the imputed interest rate is 12%. On the basis of this information, Nashville's residual income is:
A) $432,000.
B) $708,000.
C) $1,140,000.
D) $2,460,000.
E) None of the answers is correct.
Correct Answer:
Verified
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