The Central Division of AAA, Inc., has operating income of $64,000 on sales revenue of $640,000.Divisional operating assets are $320,000 and management of AAA has determined that a minimum return of 12% should be expected from all investments.
(a.)Using the DuPont model, calculate the Central Division's margin, turnover, and ROI.
(b.)Calculate the Central Division's residual income.

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The Answer of The Central Division of AAA, Inc., has operating income of $64,000 on sales revenue of $640,000.Divisional operating assets are $320,000 and management of AAA has determined that a minimum return of 12% should be expected from all investments.
(a.)Using the DuPont model, calculate the Central Division's margin, turnover, and ROI.
(b.)Calculate the Central Division's residual income.