Sales$ 400,e00Variable expenses26е, еееContribution margin140,e0040,000Fixed expenses$ 100, eee$ 350, ee0Net operating incomeAverage operating assetsIf the company's minimum required rate of return on average operating assets is 16%, Its residual income would be:Multiple Choice$46,000.$45,000.$44,000.

Lets understand the basics. Residual income is a income earned over a minimum required rate of…

$ 400,000 260, e00 Sales Variable expenses Contribution margin Fixed expenses 140, eee 40,e00 Net operating income $ 100, e00 Average operating assets $ 350, e00 If the company's minimum required rate of return on average operating assets is 16%, Its residual income would be: Multiple Choice $46,000. $45,000. $44,000.

$ 400,000 260, e00 Sales Variable expenses Contribution margin Fixed expenses 140, eee 40,e00 Net operating income $ 100, e00 Average operating assets $ 350, e00 If the company's minimum required rate of return on average operating assets is 16%, Its residual income would be: Multiple Choice $46,000. $45,000. $44,000.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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