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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?

$393,500

$381,000

$398,000

$386,000

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This provides the steps to calculate the Residual income

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