Holo Company Reported the Following Financial Numbers for One of Its

Multiple Choice

Holo Company reported the following financial numbers for one of its divisions for the year;average total assets of $5,800,000;sales of $5,375,000;cost of goods sold of $3,225,000;and operating expenses of $1,147,000.Assume a target income of 15% of average invested assets.Compute residual income for the division:

A) $150,450.
B) $196,750.
C) $150,500.
D) $133,000.
E) $100,300.