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Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,190,000; sales of $4,615,000; cost of

Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,190,000; sales of $4,615,000; cost of goods sold of $2,640,000; and operating expenses of $1,462,000. Assume a target income of 8% of average invested assets. Compute residual income for the division: $158,000. $41,040. $177,800. $135,300. $187,800.

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