The Parts Division of the Stein Corporation had average operating assets of $150,000 and net operating income of $27,800 in March. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 17%.Required:What was the Parts Division's residual income in March?
What will be an ideal response?
| Net operating income | $27,800 |
| Minimum required return ($150,000 × 17%) | 25,500 |
| Residual income | $2,300 |
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