Bungert Inc. reported the following results from last year's operations: Sales$15,200,000Variable expenses 9,470,000Contribution margin 5,730,000Fixed expenses 4,818,000Net operating income$ 912,000The company's minimum required rate of return is 12% and its average operating assets were $8,000,000. Last year's residual income was closest to:
A. ($48,000)
B. ($972,800)
C. $992,000
D. $912,000
Answer: A
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