EKPN Company Recorded the Following Operating Data What Is EKPN Company's Residual Income?
A)$2,200
B)($2,200)
C)($7,700)
D)($10,100)

question 8

Multiple Choice

EKPN Company recorded the following operating data: $$\begin{array} { l r } \text { Sales } & \$ 1,250,000 \\\text { Contribution margin } & 485,000 \\\text { Total direct fixed costs } & 400,300 \\\text { Total operating assets Jan. 1, 2016 } & 750,000 \\\text { Total operating assets Dec. 31, 2016 } & 790,000 \\\text { EKPN Company's desired return } & 12 \%\end{array}$$ What is EKPN Company's residual income?

• A)$2,200
• B)($2,200)
• C)($7,700)
• D)($10,100)

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Definitions:

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Authority and Subordination

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