What is the residual income


The owner of a restaurant is contemplating investing in a new patio for outdoor dining. If net income for the patio is 15% of patio sales, $50,000 of average operating assets are used for the new patio, the minimum required return is 8%, and patio sales is $120,000, what is the residual income?

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Accounting Basics: What is the residual income
Reference No:- TGS085210

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