A Publishing Company Is Finalizing Data for Their Most Recently

Multiple Choice

A publishing company is finalizing data for their most recently completed year. The production department spent $5,000 on a new printer and $3,000 on a new supercomputer. The Operating Income tied to the new printer is expected to be $556 while the supercomputer is expected to have an Operating Income of $337. The company's Required Rate of Return is 6%. Management would like to know how much Residual Income to expect from the supercomputer.

A) $157
B) $180
C) $219
D) $337