Lusk Corporation produces and sells 14,600 units of Product X each month. The selling price of Product X is $28 per unit, and variable expenses are $22 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $101,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice ($60,600) $13,400 $40,400 ($40,400) If net operating income is $87,000, average operating assets are $522,000, and the minimum required rate of return is 13%, what is the residual income? Multiple Choice $106,140 $48,720 $19,140 $67,860 BR Company has a contribution margin of 20%. Sales are $622,000, net operating income is $124,400, and average operating assets are $141,000. What is the company's return on investment (ROI)? Multiple Choice 4.4% 20.0% 88.2% 0.2%
