Charles Motor Company makes electric cars and has two products, the General and the Extreme. To produce the General, Charles Motor employed assets of $23,500,000 at the beginning of the period and $30,000,000 of assets at the end of the period. Other costs to manufacture the General include the following:

Direct materials $1,450 per unit

Setup $700 per setup-hour

Production $470 per machine-hour

General administration and selling costs total $1,777,000 for the period. In the current period, Charles Motor produced 8000 General cars using 7,000 setup-hours and 176,500 machine-hours. Charles Motor sold these cars for $14,200 each. The operating income of Charles is $12,368,000. Weighted average cost of capital (WACC) is 15%. Company uses average assets to calculate ROI and RI.

The residual income (RI) for General was

Select one:

a. $ 8,355,500

b. $14,200

c. $14,382,000

d. Cannot be determined from the data given

e. $12,368,000