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:

Multiple Choice

• $48,300. (This ans is wrong)

• $18,500.

• $71,000.

• $197,500.

• $61,000.