In September, the Universal Solutions Division of Mcallister Corporation Had

Multiple Choice

In September, the Universal Solutions Division of Mcallister Corporation had average operating assets of $120,000 and net operating income of $12,800. The company uses residual income, with a minimum required rate of return of 12%, to evaluate the performance of its divisions. What was the Universal Solutions Division's residual income in September?

A) -$1,600
B) $1,600
C) -$1,536
D) $1,536