Chace Products Is a Division of a Major Corporation

Multiple Choice

Chace Products is a division of a major corporation. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. The company's minimum required rate of return is 12%.
-The division's residual income is closest to:

A) $575,100
B) $1,175,100
C) $(1,980,900)
D) $(24,900)