Ferris Wares Is a Division of a Major Corporation Required:
A

Essay

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