Financial data for Beaker Company for last year appear below:

Beaker Company
Statements of Financial Position
	Beginning Balance			Ending Balance
Assets:
Cash	$	335,000		$	471,760
Accounts receivable		210,000			176,000
Inventory		296,000			264,000
Plant and equipment (net)		508,000			460,000
Investment in Cedar Company		229,000			295,000
Land (undeveloped)		182,000			182,000
Total assets	$	1,760,000		$	1,848,760
Liabilities and owners' equity:
Accounts payable	$	190,000		$	235,000
Long-term debt		833,000			833,000
Owners' equity		737,000			780,760
Total liabilities and owners' equity	$	1,760,000		$	1,848,760

Beaker Company
Income Statement
Sales				$	2,050,000
Less operating expenses					1,517,000
Net operating income					533,000
Less interest and taxes:
Interest expense	$	96,700
Tax expense		202,540			299,240
Net income				$	233,760

The company paid dividends of $190,000 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 35%. What was the company's residual income last year?