The Following Information Has Been Gathered for the Door Division

question 3

Multiple Choice

The following information has been gathered for the Door Division: C $$\begin{array} { | l | r | } \hline \text { Return on inw estment (Rol) } & 15.0 \% \\\hline \text { Sales } & \$ 120,000 \\\hline \text { Operating assets } & \$ 60,000 \\\hline \text { Cost of Capital } & 12.0 \% \\\hline \text { Profit margin } & 7.5 \% \\\hline\end{array}$$ ompute the Door Division's residual income.

• A) $1,800.
• B) $2,700.
• C) $3,600.
• D) $5,400.

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Definitions:

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