Compute the Average Assets Invested for the Hi Ho Investment

Multiple Choice

Compute the average assets invested for the Hi Ho investment center as shown below. $\begin{array}{lr}&\text { Hi Ho Subsidiary }\\\text { Total sales } & \$ 20,000 \\\text { Operating income } & \$ 5,000 \\\text { Beginning assets invested } & \$ 14,000 \\\text { Ending assets invested } & \$ 14,600 \\\text { Average assets invested } & \$ ? \\\text { Desired ROI } & 25 \%\\\text { Residual income }&\$?\end{array}$

A) $14,400
B) $14,450
C) $14,350
D) $14,300