Current Attempt in Progress

The following data pertains to the Retail Division of Motor Express:

Sales

$$700,000$

Invested capital

$200,000$

Net operating profit after taxes

$49,000$

Noninterest$-$bearing current liabilities

$20,000$

The minimum rate of return specified by Motor Express is $12$ percent and the cost of capital is $8$ percent. How much is residual

income?

$$27,400$

$$25,000$

$$34,600$

$$33,000$