Cabell Products is a division of a major corporation. Last year the division had total sales of $28,770,000, net operating income of $1,611,120, and average operating assets of $5,754,000. The company's minimum required rate of return is 10%.The division's residual income is closest to:

A) $1,611,120
B) $1,035,720
C) $(1,150,800)
D) $2,186,520

Residual Income

The amount of income that an individual or company retains after accounting for all operating expenses and cost of capital.

Operating Assets

Assets that are used by a company in its daily operations to generate revenue, excluding any investment or non-operational assets.

Net Operating Income

The profit derived from a company's regular business activities, excluding deductions of interest and taxes.