The Consumer Products Division of Garafalo Corporation Had Average Operating

Multiple Choice

The Consumer Products Division of Garafalo Corporation had average operating assets of $300,000 and net operating income of $46,900 in March. The minimum required rate of return for performance evaluation purposes is 16%.
-What was the Consumer Products Division's residual income in March?

A) $7,504
B) $1,100
C) -$7,504
D) -$1,100