Answer:
$201,300
Explanation:
Carter Company
Computation of the residual income for the division
First step
Using this formula
Sales -Cost of goods sold- expenses
Operating
Let plug in the formula
$4,555,000 - 2,580,000 - 1,402,000
= $573,000
Second step
Now let find the Residual Income
Residual income =$573,000 - ($4,130,000 * 9%)
Residual income = $573,000-$371,700
Residual income =$201,300
Therefore the residual income for the division will be $201,300