Sales $500,000 Net operating income $100,000 Average operating assets $400,000 minimum required return 20%

Required:

1. Compute the margin for Silver Industries.

2. Compute the turnover for Silver Industries.

3. Compute the return on investment (ROI) for Silver Industries.

4. Compute the residual income for Silver Industries.

5. The division is planning to make an investment of $100,000 in a project that will generate an annual net operating income of $15,000. If the manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment?