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Author Question: People's Construction Company has set a 15% required minimum rate of return. The company's CFO is ... (Read 95 times)

zl00505

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Question 1

Net operating profit is defined as
◦ contribution margin minus traceable fixed costs.
◦ sales minus variable costs.
◦ segment margin minus income taxes.
◦ operating income minus income taxes.

Question 2

People's Construction Company has set a 15% required minimum rate of return. The company's CFO is considering investing in a $125,000 crane that is expected to generate $25,000 in additional operating income. What is the crane's residual income?
◦ $18,750
◦ $4,500
◦ $15,000
◦ $6,250


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Marked as best answer by zl00505 on Feb 5, 2023

Kevin5!

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zl00505

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


ashely1112

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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