Joseph Company Reported the Following Information for the Current Year

Multiple Choice

Joseph Company reported the following information for the current year: $\begin{array}{llr} \text {Sales } &\$787,000\\ \text { Average operating assets} &\$375,000\\ \text { Desired ROI } &12\%\\ \text { Residual income } &\$11,250\end{array}$
The company's operating income was:

A) $94,440.
B) $56,250.
C) $45,000.
D) $33,750.