Duncan Ltd. has the following information available for one its divisions in the current year: Sales revenue $3,000,000 Operating expenses 1,750,000 Average operating assets 4,000,000 Duncan requires each of its divisions to generate a minimum return of 20%. What is this division's residual income?
A) $200,000
B) $450,000
C) $700,000
D) $1,250,000
B
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