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The Bedding Division of Homestore Corporation had sales of $8,500,000 and operating income of $893,000 last year. The total assets of the Bedding Division were

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The Bedding Division of Homestore Corporation had sales of $8,500,000 and operating income of $893,000 last year. The total assets of the Bedding Division were $4,465,000, while current liabilities were $280,000. Homestore Corporation's target rate of return is 14%. The Bedding Division manager is considering whether to invest in a project that annually generates $180,000 operating income on $1,500,000 of sales and requires $1,200,000 in operatin assets What is the project's Residual Income (RI) and if the Bedding Division's manager is evaluated using Rl would the Division manager accept or reject the project? GOOD A. $12,000 and accept the project OB. $267,900 and reject the project OC. $12,000 and reject the project OD. $267,900 and accept the project

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