Financial data for Beaker Company for last year appear below:

Beaker Company
Statements of Financial Position
	Beginning Balance				Ending Balance
Assets:
Cash	$	273,000			$	336,920
Accounts receivable		191,000				200,000
Inventory		313,000				251,000
Plant and equipment (net)		438,000				398,000
Investment in Cedar Company		255,000				277,000
Land (undeveloped)		305,000				305,000
Total assets	$	1,775,000			$	1,767,920
Liabilities and owners' equity:
Accounts payable	$	192,000			$	171,000
Long-term debt		839,000				839,000
Owners' equity		744,000				757,920
Total liabilities and owners' equity	$	1,775,000			$	1,767,920

Beaker Company
Income Statement
Sales				$	2,440,000
Less operating expenses					2,074,000
Net operating income					366,000
Less interest and taxes:
Interest expense	$	102,000
Tax expense		139,080			241,080
Net income				$	124,920

The company paid dividends of $111,000 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 26%. What was the company's residual income last year?