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Both the e-Learning division and the Tablet Computer Division are investment centers for Smart Touch Learning. Below is information for both divisions for the month
Both the e-Learning division and the Tablet Computer Division are investment centers for Smart Touch Learning. Below is information for both divisions for the month of October e-Learning Division Operating income $450,000 Total assets $2,500,000 Sales revenue $7,500,000 Tablet Computer Division Operating income $975,800 Total assets $6,500,000 Sales revenue $5,243,600 Assume both divisions have a target rate of return of 16%, weighted average cost of capital of 40%, and effective tax rate of 30%. What is the Residual Income for the Tablet Computer Division? O A. $52,600 OB. ($64,200) O c. ($26,000) OD. $50,000
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