The income a segment is able to earn above a specified minimum return is called:

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Residual income is the income a segment is able to earn above a specified minimum return. Gross margin is the difference between revenue and cost of goods sold, profit margin is the ratio of profit to revenue, and net income is the bottom line profit after all expenses have been deducted. These terms are all related to specific financial metrics, whereas residual income is a broader concept related to the overall financial performance of a segment.

The Income a Segment Is Able to Earn Above a Specified