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 costs 803 000 Net operating income 567 000 Average Business Assets 3 000 000 At the beginning of the year, the company has 900,000 investment oppo...

To calculate the combined residual income for the entire company if it seizes the investment opportu ...

Robichau Inc. reported the following results from last year's operations: Sales 6.300.000 variable expenses 4.930.000 contribution margin

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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 costs	803.000
Net operating income	567.000
Average Business Assets	3.000.000

At the beginning of the year, the company has 900,000 investment opportunities with:

Sales 1.530.000

Contribution rate 30% of sales

Fixed expenses 306,000

The minimum rate of return of the company is 20%.

If the company seizes the investment opportunity, what will be this year's combined residual income for the entire company ?

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Introduction to Managerial Accounting

ISBN: 978-0078025792

7th edition

Authors: Peter Brewer, Ray Garrison, Eric Noreen

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Posted Date: Apr 08, 2023 01:21 AM

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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

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Introduction to Managerial Accounting

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