REB Service Co. is a computer service center. For the month of May, REB had the following operating statistics:

Sales	$ 1,400,000
Operating income	123,250
Net profit after taxes	36,975
Total assets	1,450,000
Shareholders' equity	580,000
Cost of capital	5%

Based on the above information, which one of the following statements is correct? REB has a: (Calculate ROI based on Net profit after taxes)

A. return on investment of 6%

B. residual income of $(7,975)

C. return on investment of 8.93%

D. residual income of $(35,525)