Which of the following is the definition for residual income?

Multiple Choice

The net operating income that an investment center earns above the minimum required return on its total sales.

The net operating income that an investment center earns above the minimum required return on its average operating assets.

The net operating income that an investment center earns above the minimum required return on its total current assets.

The net operating income that a profit center earns above the minimum required return on its total current assets.