Which of the following formulas computes residual income?

a.Residual Income = Operating Income − Return on Investment
b.Residual Income = Operating Income − (Minimum Rate of Return × Average Operating Assets)
c.Residual Income = After-tax Operating Income / (Actual Percentage Cost of Capital × Total Capital Employed)
d.Residual Income = Operating Income / Average Operating Assets
e.Residual Income = (Minimum Rate of Return × Average Operating Assets) / Operating Income