U.S.Products operates two divisions with the following sales and expense information for the month of May: North Division: Sales $240,000; Operating income $72,000, Operating assets $600,000.
South Division: Sales $160,000; Operating income $80,000, Operating assets $800,000.
U.S.Products expects a minimum return of 10% should be earned from all investments.
South Division's residual income for May is:
A)$(8,000).
B)$0.
C)$8,000.
D)$12,000.

Question

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The Answer of U.S.Products operates two divisions with the following sales and expense information for the month of May: North Division: Sales $240,000; Operating income $72,000, Operating assets $600,000.
South Division: Sales $160,000; Operating income $80,000, Operating assets $800,000.
U.S.Products expects a minimum return of 10% should be earned from all investments.
South Division's residual income for May is:
A)$(8,000).
B)$0.
C)$8,000.
D)$12,000.

USProducts Operates Two Divisions with the Following Sales and Expense