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ABC Inc. has the following information available for one of its divisions: Average operatingassets$5 000 000 Return on investment(ROI)60% Sales$8 000 000 If ABC requires

ABC Inc. has the following information available for one of its divisions:

Average operatingassets$5 000 000

Return on investment(ROI)60%

Sales$8 000 000

If ABC requires a minimum return on its investments of 30 per cent, what is their residual income?

A. $750 000

B. $1 500 000

C. $3 750 000

D. $1 950 000

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