Calculate the residual income for the northern division

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Reference no: EM131001564

Kim Corporation has two major divisions: Northern Products and Southern Products. It provides the following information for the year 2014 Northern Products Division Southern Products Division Sales revenue $140,000 $1,040,000 Operating income $46,400 $220,000 Average total assets $300,000 $5,540,000 Target rate of return 14.0% 14.0% Calculate the residual income for the Northern division.

A) $5,500

B) $4,400

C) $2,500

D) $1,800

Reference no: EM131001564

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