The following information has been gathered for the Door Division: Return on investment (ROI) 15.0% Sales$120,000 Operating assets$60,000 Cost of Capital 12.0% Profit margin 7.5% What is the Door Division's residual income?
A. $1,800.
B. $5,400.
C. $2,700.
D. $3,600.
Answer: A
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