Joseph Company Reported the Following Information for the Current Year

Multiple Choice

Joseph Company reported the following information for the current year: $\begin{array}{llr} \text {Sales } &\$800,000\\ \text { Average operating assets} &\$388,000\\ \text { Desired ROI } &13\%\\ \text { Residual income } &\$11,900\end{array}$
The company's operating income was:

A) $104,000.
B) $62,340.
C) $50,440.
D) $38,540.