Mcfadzean Ltd operates a business that manufactures products for the pet industry with four departments, and the relevant data for each is as follows.

Required

(a) Rank the four departments based on return on assets.

(b) What is the residual profit of each department, assuming that the company requires a minimum return on the average investment in assets of 12%?

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Department Sales Cost of sales Other Assets Beginning End expenses Pet food $657 500 $546 700 $70 700 $271 600 $300 000 Pet bedding 546 700 328 700 121 400 557 400 578 800 Pet toys 234 600 172 700 21 500 172 700 195 200 Pet clothes 103 800 40 400 26 400 210 200 180 200