One of X Companys investment centers had the following operating statistics: Sales $450,000

Operating income 25,000

X Co. net profit after taxes 8,000

Total assets 500,000

Shareholders equity 200,000

Assuming the companys cost of capital is 6%, which one of the following statements is correct?

		The centers residual income is ($5,000).
		The centers return on investment is 4%.
		The centers residual income is ($22,000).
		The centers residual income is $13,000.