Dynamic Corporation Provides the Following Financial Information Calculate the Residual Income of Dynamic Corporation

Multiple Choice

Dynamic Corporation provides the following financial information: $$\begin{array} { | l | r | } \hline \text { Minimum acceptable operating income } & \$ 520,000 \\\hline \text { Average total assets } & \$ 2,000,000 \\\hline \text { Operating income } & \$ 705,000 \\\hline \text { Return on investment } & 35 \% \\\hline \text { Net sales } & \$ 825,000 \\\hline\end{array}$$ Calculate the residual income of Dynamic Corporation.

A) $1,480,000
B) $305,000
C) $185,000
D) $6,521,250