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I can't figure out this question for ROI, residual income using the information I'm given. (Cost accounting) I know the formula for residual income is

I can't figure out this question for ROI, residual income using the information I'm given. (Cost accounting) I know the formula for residual income is Operating Income-(minimum rate of return x operating assets), but how do I do it with this info? My book isn't very clear on how to work it out.

Here's the info:

The following selected data pertain to the Argent Division for last year:

Sales $1,000,000

Variable Costs $624,000

Traceable Fixed Costs $100,000

Average Invested Capital $1,500,000

Imputed Interest Rate 15%

  1. How much is residual income?
  2. How much is the return on investment? Enter answer as percentage, rounded to two decimal places.

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