Financial data for Beaker Company for last year appear below:

Beaker Company
Statements of Financial Position
	Beginning Balance			Ending Balance
Assets:
Cash	$	341,000		$	336,590
Accounts receivable		188,000			192,000
Inventory		260,000			251,000
Plant and equipment (net)		448,000			385,000
Investment in Cedar Company		315,000			257,000
Land (undeveloped)		301,000			301,000
Total assets	$	1,853,000		$	1,722,590
Liabilities and owners' equity:
Accounts payable	$	203,000		$	206,000
Long-term debt		892,000			892,000
Owners' equity		758,000			624,590
Total liabilities and owners' equity	$	1,853,000		$	1,722,590

Beaker Company
Income Statement
Sales				$	2,350,000
Less operating expenses					2,103,250
Net operating income					246,750
Less interest and taxes:
Interest expense	$	99,200
Tax expense		78,960			178,160
Net income				$	68,590

The company paid dividends of $202,000 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company.

Required:

a. Compute the company's margin, turnover, and return on investment for last year.

b. The Board of Directors of Beaker Company has set a minimum required return of 18%. What was the company's residual income last year?