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?

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The Answer of 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?

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

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