Please HELP!!!

Assume a company reported the following results:

Sales	$	400,000
Variable expenses		260,000
Contribution margin		140,000
Fixed expenses		40,000
Net operating income	$	100,000
Average operating assets	$	575,000

If the companys minimum required rate of return on average operating assets is 16%, its residual income would be:

Multiple Choice

• $8,000.

• $9,000.

• $10,000.

• $11,000.