Financial data for Hunger Games Company for last year appear below:

Hunger Games Company
Statements of Financial Position
	Beginning Balance	Ending Balance
Assets:
Cash	$120,700	$220,000
Accounts receivable	225,000	475,000
Inventory	317,000	390,000
Plant and equipment (net)	940,000	860,000
Investment in Katniss Company	100,000	98,000
Land (undeveloped)	198,000	65,000
Total assets	$1,900,700	$2,108,000
Liabilities and owners' equity:
Accounts payable	$178,700	$8,000
Long-term debt	512,000	600,000
Owners' equity	1,210,000	1,500,000
Total liabilities and owners' equity	$1,900,700	$2,108,000

Hunger Games Company
Income Statement
Sales		$4,500,000
Less operating expenses		4,000,000
Net operating income		500,000
Less interest and taxes:
Interest expense	$97,000
Tax expense	127,000	224,000
Operating Income		$276,000

The "Investment in Katniss Company" on the statement of financial position represents an investment in the stock of another company. Required:

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

2. The Board of Directors of Hunger Games Company have set a minimum required return of 15%. What was the company's residual income last year?