Brutus is a division of Madam Medusas Pawn Shop/Boutique, Inc. Last year, the division generated operating income of $609,840 and sales revenue of $10,890,000. Given invested capital of $3,000,000 and a hurdle rate of 15%, which of the following statements is correct?

A.

For every dollar of capital invested, $3.63 of sales revenue is generated.

B.

The residual income for Brutus is $69,840.

C.

For every dollar of capital invested, approximately $2.00 of income is earned.

D.

If the divisions manager is evaluated based on maintaining the divisions current Return on Investment, he would accept an investment opportunity that would yield a return of 18%.

E.

For every dollar of sales revenue generated, $0.56 of income is earned.