Quaker Foods North America is another one of PepsiCo’s divisions. The division had assets of \($1,021\) million, operating income of \($669\) million, and sales revenue of

\($2,742\) million.

1. Compute Quaker’s ROI, sales margin, and capital turnover.

2. Compute Quaker’s residual income, assuming the minimum acceptable rate of return is 25%.