Dell Corporation reported the following information for the

Dell Corporation reported the following information for the current year:

Sales $ 810,000

Average operating assets $ 310,000

Desired ROI 13 %

Net income $ 51,000

The company\'s residual income was:

A. $40,300

B. $14,000.

C. $24,700

D. $10,700.

D. $10,700

Residual Income = Net Income - (Average Operating Assets * Desired ROI)

Residual Income = $51,000 - ($310,000 * 13%)

Residual Income = $10,700