Ewan Logistics Provides the Following Information What Is the Company's Residual Income?
A) $(200,000)
B) $540,000

Ewan Logistics provides the following information: $$\begin{array} { | l | r | } \hline \text { Operating income } & \$ 1,600,000 \\\hline \text { Net sales } & \$ 14,000,000 \\\hline \text { Average total assets } & \$ 1,800,000 \\\hline \text { Management's target rate of return } & 30 \% \\\hline\end{array}$$ What is the company's residual income?

A) $(200,000)
B) $540,000
C) $1,320,000
D) $1,060,000