The Ballpoint Pen Division of Ink About It Company, had operating income of $9.300.000 and operating assets of $46,100,000 during the current year. The Ballpoint Pen Division has developed a potential new product that would require $9,800,000 in operating assets and would be expected to provide $2,700,000 in operating income each year. The company has set a target return on investment (ROI) of 20% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division. Multiple Choice $780,000 $820,000 $1,880,000 $620,000