Shannon Pharmaceuticals Has the Following Information Available for One of Its

Multiple Choice

Shannon Pharmaceuticals has the following information available for one of its divisions in the current year:
$\begin{array}{lr} \text { Sales revenue} &\$10000000\\ \text { Operating expenses } &4500000\\ \text { Average operating assets} &4000000\\\end{array}$

The company requires each of its divisions to generate a minimum return of 30 per cent.What is this division's residual income?

A) $1 500 000
B) $4 300 000
C) $2 350 000
D) $8 800 000