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Information for Machine division is as follows: Net earnings for division $20,000 Asset base for division $50,000 8%% 12% Target rate of return Operating income

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Information for Machine division is as follows: Net earnings for division $20,000 Asset base for division $50,000 8%% 12% Target rate of return Operating income margin Weighted average cost of capital 6% What is Machine division's residual income? What is Machine division's residual income? Select one: a. $8,000 b. $13.000 C. 516,000 d. $12.000

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