The New Products Division of Testar Company, had operating income of $9,100,000 and operating assets of $45,900,000 during the current year. The New Products Division has developed a potential new product that would require $9,600,000 in operating assets and would be expected to provide $2,500,000 in operating income each year. Testar 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 $2,000,000 $500,000 $300,000 $460,000