The West Division of Cecchetti Corporation Had Average Operating Assets

Multiple Choice

The West Division of Cecchetti Corporation had average operating assets of $240,000 and net operating income of $42,200 in August. The minimum required rate of return for performance evaluation purposes is 19%.What was the West Division's residual income in August?

A) $(8,018)
B) $3,400
C) $(3,400)
D) $8,018