Reference: 12-04
Estes Company Has Assembled the Following Data for Its

Multiple Choice

Reference: 12-04
Estes Company has assembled the following data for its divisions for the past year: $$\begin{array} { | l | l | l | } \hline & \text { Division A } & \text { Division B } \\\hline \text { Average operating assets } & \$ 500,000 & ? \\\hline \text { Sales } & ? & \$ 520,000 \\\hline \text { Net operating income } & \$ 100,000 & \$ 20,300 \\\hline \text { Turnover } & 1.25 & 4 \\\hline \text { Margin } & ? & 3.9 \% \\\hline \text { Minimum required rate of return } & 14 \% & ? \\\hline \text { Residual income } & ? & \$ 6,000 \\\hline\end{array}$$
-Division A's residual income is?

A) $35,000.
B) $45,000.
C) $20,000.
D) $30,000.