$\begin{array}{lr}\text { Sales } & \$ 185,000 \\\text { Operating income } & \$ 60,000 \\\text { Operating assets } & \$ 375,000\end{array}$

Multiple Choice

$\begin{array}{lr}\text { Sales } & \$ 185,000 \\\text { Operating income } & \$ 60,000 \\\text { Operating assets } & \$ 375,000\end{array}$ The manager can invest in an additional project that would require $40,000 investment in additional assets and would generate $6,000 of additional income. The company's minimum rate of return is 14%.
-Refer to Figure 12-2. What is the residual income for Stock Division with the additional project?

A) $40,000
B) $6,000
C) $7,900
D) $4,200
E) $25,600