The Following Information Pertains to the Three Divisions of Zorro

Multiple Choice

The following information pertains to the three divisions of Zorro Company: What is the residual income for Division A?
$\begin{array}{lrrr} & \text { Division A } & \text { Division B } & \text { Division C } \\\text { Sales } & ? & ? & 1,250,000 \\\text { Net operating income } & \$ 40,000 & \$ 25,000 & \$ 75,000\\\text { Average operating assets } & 400,000 & ? & ? \\\text { Return on investment } & ? & 20 \% & 15 \% \\\text { Margin } & 0.10 & 0.05 & ? \\\text { Tumover } & 1.2 & ? & ? \\\text { Target ROI } & 14 \% & 12 \% & 10 \%\end{array}$

A) ($36,000)
B) ($16,000)
C) $36,000
D) $45,000