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    Residual income for Beck Co.'s Beam Division

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    Question 20: (1 point)
    The following 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?





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    Solution Summary

    This provides the steps to calculate the Residual income