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Amerigo is a division of a major corporation. The following data are for the latest year of operations: Sales.......... $24,480,000 Net Operating income.....$1,738,080 Average operating

Amerigo is a division of a major corporation. The following data are for the latest year of operations:

Sales.......... $24,480,000

Net Operating income.....$1,738,080

Average operating assets....$6,000,000

Company's minimum required rate of return... 16%

Required:

a. What is the division's return on investment (ROI)?

b. What is the division's residual income?

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