Robichau Incorporated reported the following results from last years operations: Sales...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Robichau Incorporated reported the following results from last years operations:
| Sales | $ 6,300,000 |
|---|---|
| Variable expenses | 4,930,000 |
| Contribution margin | 1,370,000 |
| Fixed expenses | 803,000 |
| Net operating income | $ 567,000 |
| Average operating assets | $ 3,000,000 |
At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics:
| Sales | $ 1,530,000 | |
|---|---|---|
| Contribution margin ratio | 30 | % of sales |
| Fixed expenses | $ 306,000 |
The companys minimum required rate of return is 20%.
If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:
Multiple Choice
$776,100
($17,100)
$720,000
($60,000)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.