Net income 30,000 200,000 $ 40,000 The company paid dividends of $16.000 last year. The "Investment in Salem Service Corp.." on the bal- sheet represents an investment in the stock of another company Required 1. Compute the company's margin, turnover, and ROI for last year 2-The board of directors of Pierce Industries has set a minimumn required return of 14%. What was the company's residual income last year? CHECK F (1) Total PROBLEM 10-13 Return on Investment (ROI) and Residual Income (LOI, LO2) "I know headquarters wants us to add that new product line," said Clem Baker, manager of Westwood Inc.'s Office Products Division. "But I want to see the numbers before I make any move. Our division has led the company for three years, and I don't want any letdown." Westwood uated on the basis of the return that they are able to generate on invested assets, with year-end bonuses given to the divisional managers who have the highest ROl figures. Operating results for the company's Office Products Division for the most recent year are given below: Inc. is a decentralized organization with five autonomous divisions. The divisions are eval