For the year ended December 31, 2016, Settles, Inc., earned an ROI of 13.0%. Sales for the year were $15 million, and average asset turnover was 2.6. Average stockholders' equity was $3.4 million.

Required:

a. Calculate Settles, Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place.)

Margin ______________

Net Income _______________

b. Calculate Settles, Inc.'s return on equity. (Round your answer to 1 decimal place.)

Return on equity _____