1. The minimum required rate of return for XYZ Corp. is 30%. The company closed the year with the following results:

Sales	$	12,000,000
Variable expenses		7,200,000
Contribution margin		4,800,000
Fixed expenses		4,000,000
Net operating income	$	800,000
Average operating assets	$	6,000,000

What is the residual income for last year: rrechecks 2018-08-12

1. ($1,000,000)
2. $400,000
3. ($348,000)
4. $1,000,000)