Problem
Points will not be given for half solutions or incorrect ones. I want step by step explnations for all qustions.
1. The following information is available for Aggie Auto Sales:
Average operating assets $500,000
Controllable margin 50,000
Contribution margin 125,000
Minimum rate of return 8%
How much is Aggie Auto%u2019s residual income?
2. Niceville Company had sales of $400,000, variable costs of $200,000, and direct fixed costs totaling $100,000. The company%u2019s operating assets total $800,000, and its required return is 10%. How much is the residual income?
3. Oxford Company earned controllable margin of $250,000 on sales of $3,200,000. The division had average operating assets of $2,600,000. The company requires a return on investment of at least 8%. How much is residual income?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.