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Income can be allocated to partners based solely on average capital balances.
Residual Income
Residual income is the profit remaining after deducting all required costs of capital from operating income.
Margin
Typically refers to the difference between the selling price of a product and its cost, used to measure profitability.
Turnover
The rate at which inventory or assets are sold and replaced or the rate at which employees are replaced in a business.
Residual Income
The amount of income that an investment or project generates above the minimum rate of return.
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