Return on Investment and Residual Income

maintain Scott's separate identity and, thus, established the Scott Division as an investment center of Simonsen.

v$-$Shed's operating statement for the year just ended is presented below. The division's "operating assets employed" were $$24,150,000$ at the end of the year, a $5\%$ increase over the balance at the end of the previous year.

Calculate the following performance measures for the year just ended for the Scott Division of

Simonsen Structural Engineers:

a$.$ Return on average investment in operating assets employed $($ROI$).$

Round percent to one decimal place.

$\%$

b$.$ Residual income calculated on the basis of average operating assets employed.

Round amount to nearest dollar.

$$522,142\mathrm{.}9$