The Following Information Has Been Gathered for the Brake Division

Multiple Choice

The following information has been gathered for the Brake Division:
$$\begin{array} { l r } \text { Sales } & \$ 420,000 \\\text { Operating income } & \$ 75,000 \\\text { Average eurrent assets } & \$ 260,000 \\\text { Cost of capital } &12\% \\\text { Return on investment } & 15 \%\end{array}$$
What is the Brake Division's residual income?

A) $15,000.
B) $22,500.
C) $18,750.
D) $48,000.