Howard Company Provided the Following Selected Information About Its Consumer

Howard Company provided the following selected information about its consumer products division for the current year: $\begin{array}{|l|lr|}\hline \text { Desired ROI } & & 12 \% \\\hline \text { Net Income } & \$ & 150,000 \\\hline \text { Residual Income } & \$ & 30,000 \\\hline\end{array}$ Based on this information,the division's investment amount was:

A) $250,000.
B) $1,000,000.
C) $1,500,000.
D) $1,250,000.

Correct Answer:

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