Assume a company reported the following results:

Sales	$ 400,000
Variable expenses	260,000
Contribution margin	140,000
Fixed expenses	40,000
Net operating income	$ 100,000
Average operating assets	$ 425,000

If the companys minimum required rate of return on average operating assets is 16%, its residual income would be:

Multiple Choice

$32,000.

$33,000.

$34,000.

$35,000.