Bungert Inc The Company's Minimum Required Rate of Return Is 12% and \begin{array}{lr}
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question 113

Multiple Choice

Bungert Inc. reported the following results from last year's operations: $\begin{array}{lr}\text { Sales } & \$ 15,200,000 \\\text { Variable expenses } & 9,470,000 \\\text { Contribution margin } & 5,730,000 \\\text { Fixed expenses } & 4,818,000 \\\text { Net operating income } & \$ \quad 912,000 \\\end{array}$ The company's minimum required rate of return is 12% and its average operating assets were $8,000,000. Last year's residual income was closest to:

• A) $912,000
• B) ($48,000)
• C) $992,000
• D) ($972,800)

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Definitions:

U.S. Economy

The economic system of the United States, characterized by a mixture of private and public enterprise and known for being one of the world’s largest and most complex economies.

Income

The financial gain received by an individual or entity, typically through wages, profits, rents, or investments.

Government Revenues

The total money received by the government from various sources, including taxes, fees, and other charges.

Lump-Sum Tax

A tax that is a fixed amount, not dependent on the taxpayer's income level or economic transactions.