Question: Lumsden Incorporated has a $ 1 , 2 0 0 , 0 0 0 investment opportunity with the following characteristics: Sales $ 2 , 4

Lumsden Incorporated has a $1,200,000 investment opportunity with the following characteristics:
Sales
$ 2,400,000
Contribution margin ratio Fixed expenses
30% of sales
$ 600,000
The company's minimum required rate of return is 7%. The residual income for this year's investment opportunity is closest tc
Multiple Choice
$120,000
$36,000
$0
Lumsden Incorporated has a $ 1 , 2 0 0 , 0 0 0

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