Biology Forums - Study Force

Ewan Logistics provides the following information:

Operating income   $1,500,000
Net sales   $14,500,000
Average total assets   $1,950,000
Management's target rate of return   20%

What is the company's residual income?
A) $1,110,000
B) $1,650,000
C) $(450,000)
D) $390,000

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Thanks!