The following results pertain to an investment center.
$\begin{array}{lc}
\text { Sales } & \$ 1,500,000 \
\text { Variable costs } & 800,000 \
\text { Traceable fixed costs } & 100,000 \
\text { Average investment } & 1,000,000 \
\text { Divisional cost of capital (discount rate) } & 10 \%
\end{array}$
How much is the residual income (RI) for this investment center?
A)$100,000.
B)$500,000.
C)$600,000.
D)$700,000.
E)$800,000.

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The Answer of The following results pertain to an investment center.
$\begin{array}{lc}
\text { Sales } & \$ 1,500,000 \
\text { Variable costs } & 800,000 \
\text { Traceable fixed costs } & 100,000 \
\text { Average investment } & 1,000,000 \
\text { Divisional cost of capital (discount rate) } & 10 \%
\end{array}$
How much is the residual income (RI) for this investment center?
A)$100,000.
B)$500,000.
C)$600,000.
D)$700,000.
E)$800,000.

The Following Results Pertain to an Investment Center How Much Is the Residual Income (RI) for This Investment