Abbe Company Reported the Following Financial Numbers for One of Its

Multiple Choice

Abbe Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:

A) $203,000.
B) $193,000.
C) $150,500.
D) $60,300.
E) $197,500.