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Carter Company reported the following financial numbers for one of its divisions for the year; average assets of $4,270,000; sales of $4,695,000; cost of

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Carter Company reported the following financial numbers for one of its divisions for the year; average assets of $4,270,000; sales of $4,695,000; cost of goods sold of $2,720,000; and operating expenses of $1,542,000. Assume a target income of 8% of average assets. Compute residual income for the division: Multiple Choice $158,000. $48,900 $101,400. $91,400.

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