Financial data for Beaker Company for last year appear below:

Beaker Company

Statements of Financial Position

Beginning Balance Ending Balance

Assets:

Cash $$58,000$ $$78,000$

Accounts receivable $28,00027,000$

Inventory $36,00040,000$

Plant and equipment $($net$)123,000113,000$

Investment in Cedar Company $82,000102,000$

Land $($underdeveloped$)170,000170,000$

Total assets $$497,000$ $$530,000$

Liabilities and owners' equity:

Accounts payable $$57,000$ $$70,000$

Long$-$term debt $270,000270,000$

Owners' equity $170,000190,000$

Total liabilities and owners' equity $$497,000$ $$530,000$

Beaker Company

Income Statement

Sales $$413,000$

Less operating expenses $352,000$

Net operating income $61,000$

Less interest and taxes:

Interest expense $$30,000$

Tax expense $13,00043,000$

Operating Income $$18,000$

The company paid dividends of $$2,000$ 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 have set a minimum required return of $20\%.$ What was the company's residual income last year?