Information pertaining to P Division of Judo Corporation for 2019:

Revenues $950,000

Variable costs 575,000

fixed costs 336,500

Required Rate of Return (RRR) 10%

Judo employed assets of $ 250,000 at the beginning of 2019 and $450,000 of assets at the end of 2019. Judo defines investment as average assets during the period.

The residual income (RI) was

Select one:

a. $3,5000

b. $350.

c. $3,500.

d. NONE OF THE GIVEN OPTIONS

e. $38,500.