Selected Financial Data for the Plastic Lumber Company's Outdoor Furniture

Multiple Choice

Selected financial data for The Plastic Lumber Company's Outdoor Furniture Division is as follows: $\begin{array}{|l|rr|}\hline \text { Sales } & \$ 2,100,000 \\\hline \text { Operating income } & \$ 420,000 \\\hline \text { Total assets } & \$ 1,050,000 \\\hline \text { Current liabilities } & \$ 200,000 \\\hline \text { Target rate of return } & 12 \% \\\hline \text { Weighted average cost of capital } & 10 \% \\\hline\end{array}$


-What is The Plastic Lumber Company's Outdoor Furniture Division residual income?

A) $126,000
B) $294,000
C) $315,000
D) $396,000