Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). FIRST QUESTION: Compute return on investment for each department and SECOND QUESTION: Assume a target income level of 11.1% of average invested assets. Compute residual income for each department.

Investment Center		Sales		Net Income	Average Invested Assets
Electronics	$	11,500,000	$	766,500	$	3,650,000
Sporting goods		7,600,000		900,000		4,500,000