Reference: 12-08
the Following Selected Data Pertain to Beck Co

Multiple Choice

Reference: 12-08
The following selected data pertain to Beck Co.'s Beam Division for last year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 400,000 \\\hline \text { Variable expenses } & \$ 100,000 \\\hline \text { Traceable fixed expenses } & \$ 250,000 \\\hline \text { Average operating assets } & \$ 200,000 \\\hline \text { Minimum required rate of return } & 20 \% \\\hline\end{array}$$
-How much is the residual income?

A) $80,000.
B) $50,000.
C) $40,000.
D) $10,000.