Question

Worsell Inc. reported the following results from last year’s operations: Sales $ 11,000,000 Variable expenses 8,200,000 Contribution margin 2,800,000 Fixed expenses 2,360,000 Net operating income $ 440,000 Average operating assets $ 5,000,000 The company’s minimum required rate of return is 10%. Last year's residual income was closest to: Multiple Choice $440,000 $490,000 ($638,000) ($60,000)

Answer 1

Answer:

($60,000)

Explanation:

Please see attachment .