Question
Robichau Inc. reported the following results from last year's operations: Sales 6.300.000 variable expenses 4.930.000 contribution margin 1.370.000 fixed costs 803.000 Net operating income 567.000
Robichau Inc. reported the following results from last year's operations:
| Sales | 6.300.000 |
| variable expenses | 4.930.000 |
| contribution margin | 1.370.000 |
| fixed costs | 803.000 |
| Net operating income | 567.000 |
| Average Business Assets | 3.000.000 |
At the beginning of the year, the company has 900,000 investment opportunities with:
Sales 1.530.000
Contribution rate 30% of sales
Fixed expenses 306,000
The minimum rate of return of the company is 20%.
If the company seizes the investment opportunity, what will be this year's combined residual income for the entire company ?
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
