Lumsden Inc. has a $1,200,000 investment opportunity with the following characteristics: Sales$2,400,000 Contribution margin ratio 30% of salesFixed expenses$600,000 ?The company's minimum required rate of return is 7%. The residual income for this year's investment opportunity is closest to:
A. $0
B. $120,000
C. $36,000
D. $84,000
Answer: C
You might also like to view...
When the board of directors decides to issue bonds, it is necessary to make an entry to record the SEC's authorization of the bond issue
Indicate whether the statement is true or false
Describe the three "moments of truth" that marketers focus on when attempting to enhance customer-brand encounters.
What will be an ideal response?
The information contained in the annual report is used by investors to form expectations about future earnings and dividends.
Answer the following statement true (T) or false (F)
The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of:
A) keiretsu. B) kanban. C) push production. D) kaizen. E) EOQ.