The given selected data pertain to Beck Co.'s Beam Division for last year:
Sales $2,000,000
Variable expenses $780,000
Traceable fixed expenses $750,000
Average operating assets $420,000
Minimum required rate of return 20%
Note: the traceable fixed expenses do not include any interest expense.
How much is the residual income?
- $393,500
- $381,000
- $398,000
- $386,000