Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 20%. Its effective tax rate is 25%.

Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 20%. Its effective tax rate is 25%. Sales $8.000.000 Operating income 2,400,000 Total assets 3.000.000 Current liabilities 830.000 What is the division's Residual Income (RI)? O A. $1,800,000 OB. $375,000 O C. $1,500,000 OD. $2,000,000