Jaguar Division of Automobile Delights,is Evaluated Based on Residual Income

Multiple Choice

Jaguar Division of Automobile Delights,is evaluated based on residual income generated.In the most recent year,the Jaguar Division generated a residual income of $2,000,000 and net income of $5,000,000.The target rate of return for all divisions of Automobile Delights is 20%.What was the return on investment for the Jaguar Division?

A) 40%
B) 13%
C) 20%
D) 33%