Beta Division Had the Following Information What Is the Residual Income for Beta Division?
A)$(10,000)
B)$7,500

question 62

Multiple Choice

Beta Division had the following information: $\begin{array}{lr}\text { Asset base in Beta Division } & \$ 400,000 \\\text { Net income in Beta Division } & \$ 50,000 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target ROI } & 15 \% \\\text { Margin for Beta Division } & 20 \%\end{array}$ What is the residual income for Beta Division?

• A)$(10,000)
• B)$7,500
• C)$48,000
• D)$60,000