Lambda Division Had the Following Information What Is the Residual Income for Lambda Division?
A)$(10,000)
B)$48,000

Multiple Choice

Lambda Division had the following information: $\begin{array}{lr}\text { Asset base in Lambda Division } & \$ 400,000 \\\text { Met income in Lambda Division } & \$ 5,000 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target ROI } & 15 \% \\\text { Margin for Lambda Division } & 20 \%\end{array}$ What is the residual income for Lambda Division?

A) $(10,000)
B) $48,000
C) $7,500
D) $60,000