Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,220,000; sales of $4,645,000; cost of goods sold of $2,670,000; and operating expenses of $1,492,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:

$197,500.

$61,000.

$18,500.

$48,300.

$71,000.