The LI Corporation reports the following data: Net Operating Income $558,000 Turnover Margin 20% Minimum required rate of return 16% Sosistance allowed Q) What is the Corporation's residual income?23 Corporation has two departments, Toys and Candy. The company's most recent monthly contribution forisal woome water Department Total Sales Toys Candy $4,200,000 $3,000,000 $1,200,000 Variable expenses 2.000.000 1.500.000 500.000 Contribution Margin 2,200,000 1,500,000 700,000 Fixed Expenses 2.200.000 1.300.000 900.090 Net operating income poss) 200,000 (200,000) study indicates that $300,000 of the fixed expenses being charged to the Candy Department are sunk costs of sinceted coull that won corsage paul the Candy Department is dropped. In addition, the elimination of the Candy Department will result in a 20% decrease in the sales of the toys Department Corporation as a whole! Q)If the Candy Department is dropped, what will be the effect on the net operating income of the Multiple Choice O Decrease by $400,000 O Decrease by $430,090 10 of 20 IN Next >