Gebru Industries is a division of a major corporation. Last year the division had total sales of $12,450,000, net operating income of $1,357,050, and average operating assets of $3,000,000. The company's minimum required rate of return is 10%.
Required:
a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?
d. What is the amount of residual income?