The Following Information Is Available for Aggie Auto Sales How Much Is Aggie Auto's Residual Income?
A)$125,000
B)$640,000
C)$15,000

question 66

Multiple Choice

The following information is available for Aggie Auto Sales: $\begin{array}{lr}\text { Average operating assets } & \$ 750,000 \\\text { Controllable margin } & 90,000 \\\text { Contribution margin } & 175,000 \\\text { Minimum rate of return } & 10 \%\end{array}$ How much is Aggie Auto's residual income?

• A)$125,000
• B)$640,000
• C)$15,000
• D)$85,000

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Definitions:

Transportation

The movement of goods and individuals from one location to another, utilizing various modes such as road, rail, air, and sea.

Supply Chains

Networks involving the production, handling, and distribution of goods from the point of origin to the consumer, emphasizing efficiency and cost-effectiveness.

Temporal Aggregation

The process of summarizing data over time intervals, which helps in simplifying analysis by reducing the volume of data.

Responsiveness

The ability of a company or organization to react quickly and effectively to changes in the environment, customer demands, or market conditions.