Question - Ferris Wares is a division of a major corporation. The following data are for the latest year of operations:
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Sales
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$12,700,000
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Net operating income
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$1,054,100
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Average operating assets
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$5,000,000
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The company's minimum required rate of return
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16%
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Required:
What is the division's return on investment (ROI)?
What is the division's residual income?