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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 expenses 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 expenses | 803,000 |
Net operating income | 567,000 |
Average Operating Assets | 3,000,000 |
At the beginning of the year the company has 900,000 investment opportunity with the following characteristics
Sales 1,530,000
Contribution margin ratio 30% of sales
Fixed expenses 306,000
The company's minimum required rate of return is 20%
If the company purses the investment opportunity this year's combined residual income for the entire company would be closest too:
a) 780,000
b) (56,100)
c) (60,000)
d) 720,000
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