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Presented below is information related to the Johnson Division of Labor LLC. Contribution margin $1,200,000 Controllable margin $895,180 Average operating assets $4,069,000 Minimum rate of
Presented below is information related to the Johnson Division of Labor LLC.
| Contribution margin | $1,200,000 | ||
| Controllable margin | $895,180 | ||
| Average operating assets | $4,069,000 | ||
| Minimum rate of return | 18 | % |
Compute the Johnson Divisions residual income.
A: $150,000
B: $467,580
C: $162,760
D: $895,180
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
6th Edition
0324302959, 9780324302950
