Candy's Chocolate Company's Financial Management Is Compiling Data in Order

Multiple Choice

Candy's Chocolate Company's financial management is compiling data in order to assess the favorability of the company's investments.The Boise faction of the company calculates a total investment of $2,000,000 and the operating income is computed to be $380,000 while the required rate of return is 15%.The Butte faction of the company has tallied a total investment of $1,500,000 and an operating income of $230,000 while the Butte faction also has a 15% required rate of return.
Required
Compute the residual income at the Boise faction and the residual income at the company's Butte faction.

A) $80,000
B) $5,000
C) $15,000
D) $25,000
E) $120,000