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Kenco Pharmaceuticals Is Evaluating Its Brown Division, an Investment Center

Question 50

Multiple Choice

Kenco Pharmaceuticals is evaluating its Brown division, an investment center. The division has a $45,000 controllable margin and $300,000 of sales. How much will Kenco's average operating assets be when its return on investment is 10%?


A) $450,000
B) $495,000
C) $300,000
D) $255,000

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