The following information pertains to Bishop Concrete: $$\begin{array} { l r }
\text { Sales revenue } & \$ 1,500,000 \
\text { Gross margin } & 600,000 \
\text { Income } & 90,000 \
\text { Invested capital } & 450,000
\end{array}$$ The company's imputed interest rate is 8%.
The residual income is:
A) $30,000.
B) $36,000.
C) $42,000.
D) $54,000.
E) $82,800.

Question

The following information pertains to Bishop Concrete: $$\begin{array} { l r } 
\text { Sales revenue } & \$ 1,500,000 \
\text { Gross margin } & 600,000 \
\text { Income } & 90,000 \
\text { Invested capital } & 450,000
\end{array}$$ The company's imputed interest rate is 8%.
The residual income is:
A) $30,000.
B) $36,000.
C) $42,000.
D) $54,000.
E) $82,800.

Quizplus · Accepted Answer

The Answer of The following information pertains to Bishop Concrete: $$\begin{array} { l r } 
\text { Sales revenue } & \$ 1,500,000 \
\text { Gross margin } & 600,000 \
\text { Income } & 90,000 \
\text { Invested capital } & 450,000
\end{array}$$ The company's imputed interest rate is 8%.
The residual income is:
A) $30,000.
B) $36,000.
C) $42,000.
D) $54,000.
E) $82,800.

The Following Information Pertains to Bishop Concrete The Company's Imputed Interest Rate Is 8