Geballe Industries is a division of a major corporation. Last year the division had total sales of $21,420,000, income (NOPAT) of $2,270,520, and invested capital of $6,000,000. The company's minimum required rate of return (cost of capital) is 10%.
Required:
a. What is the division's profit margin?
b. What is the division's investment turnover?
c. What is the division's return on investment (ROI)?
d. What is the division's residual income?