The Hum Division of the Ho Company reported the following data for last year:
Sales $800,000
Operating expenses $650,000
Interest expense $50,000
Tax expense $30,000
Stockholders' equity $200,000
Average operating assets $600,000
Minimum required rate of return 12%
The residual income for the Hum Division last year was:
The return on investment last year for the Hum Division was: