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The following information pertains to the three divisions of Merrymount Company: Division X Division Y Division Z Sales ? ? 1,250,000 Net operating income $

The following information pertains to the three divisions of Merrymount Company:

Division X Division Y Division Z
Sales ? ? 1,250,000
Net operating income $ 36,000 $25,000 $ 75,000
Average operating assets 300,000 ? ?
Return on investment ? 20% 15%
Margin 0.10 0.05 ?
Turnover 1.5 ? ?
Target ROI 15% 12% 10%

What is the residual income for Division X?

a.$(36,000)

b.$45,000

c.$(9,000)

d.$36,000

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