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The manager of Synergy Company's Stock Division projects the following for next year: Sales $ 1 9 5 , 0 0 0 Operating income 7

The manager of Synergy Company's Stock Division projects the following for next year:
Sales $195,000
Operating income 70,000
Operating assets 385,000
The manager can invest in an additional project that would require $50,000 investment in additional assets and would generate $9,000 of additional income. The company's minimum rate of return is 15%. What is the residual income for the Stock Division without the additional investment?
a. $6,000
b. $13,450
c. $18,000
d. $16,600
e. $12,250

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