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Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 400,000 260,000 140,000
Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 400,000 260,000 140,000 40,000 $ 100,000 $ 450,000 If the company's minimum required rate of return on average operating assets is 16%, its residual income would be: Multiple Choice $31,000. $28,000. $30,000.
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