ROl, Ri Elysian Togs sells clothing to specialty retail and department stores. For 2006, the company’s Bradley Division had the following performance targets:

a. For 2006, did die Bradley Division achieve its target objectives for ROI, asset turnover, and profit margin?

b. Where, as indicated by the performance measures, are the most likely areas to improve performance?

c. If the company has an overall target return of 12 percent, what was the Bradley Division’s residual income for 2006?

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Asset turnover 1.8 Profit margin 8.0% Actual information concerning the performance of the Bradley Division in 2006 follows: Total assets at beginning of year $ 9,400,000 Total assets at end of year Sales Operating expenses 14,900,000 24,000,000 22,560,000