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Management of XMart Department Stores wanted to know how well the jewelry department was performing based on the following information: Average operating assets $700,000 Controllable
Management of XMart Department Stores wanted to know how well the jewelry department was performing based on the following information:
Average operating assets | $700,000 |
Controllable margin | 90,000 |
Contribution margin | 120,000 |
Minimum rate of return | 10% |
How much is XMart's residual income?
$50,000 | ||
$30,000 | ||
$20,000 | ||
12,000 |
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