Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed...

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Westerville Company reported the following results from last years operations: Sales Variable expenses Contribution margin F

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Answer 1

Answer #1

Last year's residual income = Net operating income - ( Average operating assets * Minimum required rate of return ) = 200000 - ( 625000 * 15% )

106250

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Answer 2

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