ROI and Residual Income. Puffino & Associates is a large insurance company headquartered in Milan, Italy. The

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ROI and Residual Income. Puffino \& Associates is a large insurance company headquartered in Milan, Italy. The company has a 25 percent minimum desired rate of return. Its Residential Insurance Division has an investment base of 800 million lira. In 1998, this division earned a residual income of 120 million lira and had a return on sales of 10 percent.

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1. Compute the division's ROI for 1998 2. Compute the division's asset turnover for 1998.

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