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U.S. Products operates two divisions with the following sales and expense information for the month of May: North Division: Sales $240,000; Operating income $72,000, Operating

U.S. Products operates two divisions with the following sales and expense information for the month of May:

North Division: Sales $240,000; Operating income $72,000, Operating assets $600,000.

South Division: Sales $160,000; Operating income $80,000, Operating assets $800,000.

U.S. Products expects a minimum return of 10% should be earned from all investments. South Divisions residual income for May is:

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