Financial data for Beaker Company for last year appear below:

Beaker Company
Statements of Financial Position
	Beginning Balance				Ending Balance
Assets:
Cash	$	336,000			$	299,888
Accounts receivable		139,000				149,000
Inventory		236,000				254,000
Plant and equipment (net)		452,000				479,000
Investment in Cedar Company		269,000				267,000
Land (undeveloped)		377,000				377,000
Total assets	$	1,809,000			$	1,825,888
Liabilities and owners' equity:
Accounts payable	$	203,000			$	185,000
Long-term debt		834,000				834,000
Owners' equity		772,000				806,888
Total liabilities and owners' equity	$	1,809,000			$	1,825,888

Beaker Company
Income Statement
Sales				$	2,280,000
Less operating expenses					1,812,600
Net operating income					467,400
Less interest and taxes:
Interest expense	$	104,900
Tax expense		177,612			282,512
Net income				$	184,888

The company paid dividends of $150,000 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?