Figure 19-4
Beta Division Had the Following Information -Refer to Figure 19-4

Multiple Choice

Figure 19-4
Beta Division had the following information: $\begin{array}{lr}\text { Asset base in Beta Division } & £ 400,000 \\\text { Net income in Beta Division } & £ 50,000 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target ROI } & 15 \% \\\text { Margin for Beta Division } & 20 \%\end{array}$
-Refer to Figure 19-4. What is the residual income for Beta Division?

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