Guardian Corporation has two major

divisions

Healthcare Products and Pharmaceutical Products. It provides the following information for the year.

	Healthcare Division	Pharmaceutical Division
Net sales	$150,000	$1,750,000
Operating income	$46,400	$230,000
Average assets	$290,000	$5,500,000
Target rate of return	12.0%	11.0%

Calculate the residual income for the Healthcare Division.

A.

$28,400

B.

$11,600

C.

$103,600

D. $46,400