-What Was the Residual Income?
A) $10,000

question 104

Multiple Choice

$\begin{array}{l}\text { The following selected data pertain to Beck Co.'s Beam Division for last year: }\\\begin{array} { |l | r | } \hline \text { Sales } & \$ 400,000 \\\hline \text { Variable Expenses } & \$ 100,000 \\\hline \text { Traceable Fixed Expenses } & \$ 250,000 \\\hline \text { Average Operating Assets } & \$ 200,000 \\\hline \text { Minimum Required Rate of Return } & 20 \% \\\hline\end{array}\end{array}$
-What was the residual income?

• A) $10,000.
• B) $40,000.
• C) $50,000.
• D) $80,000.

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