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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
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