Selected information for ABC Company for the past two years appears below: 

Year 1 Residual income ................................. $ 2,800 Variable costs .................................. 40% of sales Fixed costs ..................................... $106,400 Minimum required rate of return ................. 12% 

Year 2 Residual income ................................. $ 78,000 Variable costs .................................. 60% of sales Fixed costs ..................................... $144,000 Minimum required rate of return ................. 12% Turnover ........................................ 4 

The margin in year 2 was four times larger than the margin in year 1. 

1. Calculate ABC Company's return on investment (ROI) for year 2. Enter your answer as a number followed by the percentage symbol (i.e., 10%). 

2. Calculate ABC Company's return on investment (ROI) for year 1. Enter your answer as a number followed by the percentage symbol (i.e., 10%).