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.

Calculate ABC Company's return on investment (ROI) for year 2.