B)

Sales $ 1,000,000

Variable expenses 300,000

700,000 Contribution margin

500,000 Fixed expenses

200,000 Net operating income

$ 625,000 Average operating assets

This year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 200,000 Contribution margin ratio 60 % of sales Fixed expenses $ 90,000

The companys minimum required rate of return is 15%.

value: 0.33 points Foundational 11-11 11. What is last year's residual income? Residual income