The Following Information Has Been Gathered for the Door Division

Multiple Choice

The following information has been gathered for the Door Division: C $$\begin{array} { | l | r | } \hline \text { Return on inw estment (Rol) } & 15.0 \% \\\hline \text { Sales } & \$ 120,000 \\\hline \text { Operating assets } & \$ 60,000 \\\hline \text { Cost of Capital } & 12.0 \% \\\hline \text { Profit margin } & 7.5 \% \\\hline\end{array}$$ ompute the Door Division's residual income.

A) $1,800.
B) $2,700.
C) $3,600.
D) $5,400.