Edinger Industries Is a Division of a Major Corporation Required:
What Is the Division's Residual Income

Essay

Edinger Industries is a division of a major corporation.The following data are for the latest year of operations: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 20,760,000 \\\hline \text { Net operating income } & \$ 2,563,480 \\\hline \text { Average operating assets } & \$ 6,000,000 \\\hline \begin{array} { l } \text { The company's minimum required rate of } \\\text { return }\end{array} & 16 \% \\\hline\end{array}$$
Required:
What is the division's residual income?