What is cantts residual income

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Reference no: EM132502697

Cantt Duet Manufacturing Company has provided the following financial information:

Sales                                    $400,000

Variable Expenses                   $250,000

Fixed Expenses                        $50,000

Investment in Fixed Assets       $300,000

Required Rate of Return               5%

Question 1: What is Cantt's residual income?

Group of answer choices

1) $95,000

2)$15,000

3) $85,000

4) $100,000

5) $80,000

Reference no: EM132502697

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