Cabal Products is a division of a major corporation. Last year the division had total sales of $11,440,000, net operating income of $686,400, and average operating assets of $2,402,400. The company's minimum required rate of return is 13%.

The division's margin is closest to:

46.2%

6.0%

28.6%

21.0%

If operating income is $34,000, average operating assets are $204,000, and the minimum required rate of return is 15%, what is the residual income?

$37,400

$30,600

$3,400

$27,200