15) The Sunny Division of Miami Corporation reported the following results from the past year. Shareholders require a return of 10%. Management calculated a weighted-average cost of capital (WACC) of 5%. Sunny's corporate tax rate is 30%.

Sales	$700,000
Operating income	$250,000
Total assets	$1,500000
Current liabilities	600,000

What is the division's Residual Income (RI)?

A) $70,000

B) $77,500

C) $100,000

D) $250,000

PLEASE SHOW ANSWER AND PROVIDE EXPLANATION!