5. Following is information relating to Kew Co.'s Vale Division last year:

	Sales...................................................................................................................	$500,000
	Variable expenses...................................................................................................................	300,000
	Traceable fixed expenses...................................................................................................................	50,000
	Average operating assets...................................................................................................................	100,000
	Minimum required rate of return...................................................................................................................	6%

Vale's residual income was:

A) $144,000.

B) $150,000.

C) $156,000.

D) $200,000.

with explanation.