Current Attempt in ProgressYour AnswerBonita Industries had sales of $500000, variable costs of $580000, and direct fixed costs totaling $100000. The company's averageoperating assets total $980000 and its required return is 13%. What is the company's residual income?4$372600$-307400Correct Answer$452600O $127400

Residual income measures the profit a company generates above its required return on invested…

Answered: Bonita Industries had sales of $500000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bonita Industries had sales of $500000, variable costs of $580000, and direct fixed costs totaling $100000. The company's average operating assets total $980000 and its required return is 13%. What is the company's residual income? O $372600 O $-307400 O $452600 O $127400