Guerlane Fragrance Corporation has a perfume division, Essense, and a cologne division, Karisma. The following information relates to last year's operations at Karisma: Net operating income = $10,000

Profit Margin = 5%

Investment Turnover = 2.5

Minimum required rate of return = 15%

Calculate Total Assets.

Calculate Residual income and is Karisma division meeting Guerlane Fragrance Corporation's required rate of return.