Bleu Stone Is a Division of a Major Corporation Required:
A

Essay

Bleu Stone is a division of a major corporation. The following data are for the latest year of operations:
$\begin{array}{l}\text { Sales } & \$ 33,040,000 \\\text { Net operating income } & \$ 1,453,760 \\\text { Average operating assets } & \$ 8,000,000\\\text { The company's minimum required rate of return }&18\%\end{array}$


Required:
a. What is the division's return on investment (ROI)?
b. What is the division's residual income?