Dacker Products Is a Division of a Major Corporation The Division's Residual Income Is Closest To:
A) $2,808,960
B)

question 25

Multiple Choice

Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: $\begin{array}{lr}\text {Sales }&\$36,480,000\\\text {Net operating income }&\$2,808,960\\\text {Average operating assets }&\$8,000,000\\\text { The company's minimum required rate of return }&16\%\end{array}$
The division's residual income is closest to:

• A) $2,808,960
• B) $4,088,960
• C) $(3,027,840)
• D) $1,528,960

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