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Q1) Safety Seats Co. recorded operating data for its shoe division for year. Company's desired ROI is 5%.

Sales

$500,000

Variable costs

400,000

Contribution margin

100,000

Total direct fixed costs

60,000

Average total operating assets

200,000

Compute the residual income?

i) $20,000

ii) $30,000

iii) $40,000

iv) $90,000

v) $100,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916747

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