During 2008, Fing Co. reported sales of $1,800,000 and a return on investment of 7.5%. Unfortunately, Fing's profit margin of 5% left its net income 25% short of the required target for the year. What was Fing's residual income for 2008? PLEASE PROVIDE A BRIEF EXPLANATION.
A. - $60,000
B. - $30,000
C. - $12,200
D. - $ 1,200
E. + $ 1,200.
Please see the response to your posting as below:
Actual Net profit ...
Solution shows calculations of residual Income.