Pine Corphas Revenues of $500,000 Resulting in an Operating Income of of $54,000.Invested

Multiple Choice

Pine Corp.has revenues of $500,000 resulting in an operating income of $54,000.Invested assets total $600,000.Residual income is $18,000.Calculate the new residual income if sales increase by 10% and the profit margin and invested assets remain the same.

A) $23,400
B) $0
C) $3,240
D) $36,000