Both the e-Learning division and the Tablet Computer Division are investment centers for Smart Touch Learning. Below is information for both divisions for the month of October:

e-Learning Division Tablet Computer Division

Sales revenue $7,500,000 $5,243,600

Variable expenses $5,225,000 $3,985,000

Contribution margin $2,275,000 $1,258,600

Fixed expenses $1,825,000 $282,800

Operating income $450,000 $975,800

What is the residual income for the tablet division?

Multiple Choice

• ($50,000)

• ($64,200)

• $800

• $975,800