James Webb Is the General Manager of the Industrial Product

James Webb is the general manager of the Industrial Product Division, and his performance is measured using the residual income (RI) method.Webb is reviewing the followed forecasted information for his division for the coming year: $\begin{array}{ll}\text { Category }&\text { Amount (thousands) }\\\text { Working capital } & \$ 1,800 \\\text { Revenue } & 30,000 \\\text { Plant and equipment } & 17,200\end{array}$ If the imputed interest charge (i.e., divisional cost of capital) is 15% and Webb wants to achieve an RI target of $2 million, what will costs have to be in order to achieve the target?

A) $9,000,000.
B) $10,800,000.
C) $23,620,000.
D) $25,150,000.
E) $25,690,000.