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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 40,000 $100,000

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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 40,000 $100,000 $300,000 of the company's minimum required rate of return on average operating assets is 16%, its residual income would be: Multiple Choice $52,000 $53,000 $54.000 $55.000

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