Worldwide Logistics Provides the Following Information What Is the Company's Residual Income?
A) $200,000
B) $450,000

Multiple Choice

Worldwide Logistics provides the following information: $$\begin{array} { | l | r | } \hline \text { Operating income } & \$ 1,600,000 \\\hline \text { Net sales } & \$ 13,000,000 \\\hline \text { Average total assets } & \$ 1,800,000 \\\hline \text { Management's target rate of return } & 25 \% \\\hline\end{array}$$ What is the company's residual income?

A) $200,000
B) $450,000
C) $1,400,000
D) $1,150,000