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


Answer: B

Business

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