Ferro Wares is a division of a major corporation. The following data are for the latest year of operations.
|
Sales |
$33,040,000 |
|
Net Operating Income |
$1,453,760 |
|
Average Operating Assets |
$8,000,000 |
|
The company’s minimum required rate of return |
18% |
Required:
i. What is the division’s ROI?
ii. What is the division’s residual income?