The following data pertains to AAA division of JJJ Company.
Selling price per unit	$15
Variable cost per unit	$5
Total fixed costs	$100,000
Total investment of AAA division	$200,000

a) the minimum desired
return on investment	10%
b) the estimated sales in unit is	12,500
What is the residual income (RI)?

1.	$10,000
2.	$5,000
3.	There is no RI
4.	We need more information to calculate RI