Question - Management of XMart Department Stores wanted to know how well the jewelry department was performing based on the following information:
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Average operating assets
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$700,000
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Controllable margin
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90,000
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Contribution margin
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120,000
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Minimum rate of return
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10%
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How much is XMart's residual income?
$50,000
$30,000
$20,000
$12,000