Use the Following Information to Compute Residual Income A) $12,000

question 75

Multiple Choice

Use the following information to compute residual income: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 320,000 \\\hline \text { Operating inc ome } & \$ 60,000 \\\hline \text { Average current assets } & \$ 250,000 \\\hline \text { Cost of capital } & 12 \% \\\hline \text { Return on inw estment } & 15 \% \\\hline\end{array}$$

• A) $12,000.
• B) $22,500.
• C) $30,000.
• D) $48,000.

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