Stevenson Corporation had $550,000 in average invested assets, liabilities of $150,000, sales of $660,000,net income amounting to $100,000, and a desired minimum rate of return of 15%. The residual income for Stevenson is a positive:

a. $40,000

b. $17,500

c. $14,850

d. $16,500

Two divisions of Halloway Company (Divisions X and Y) both have a profit margin of 8%. However, Division X has a higher ROI (return on investment) than Division Y. This is because Division X's investment turnover is larger than that of Division Y (1.8 to 1.0). Which of the following statements are true?

a.	Division Y has a higher ROI than Division X.
b.	Division X has a higher investment turnover because it is larger than Division Y.
c.	Division X is controlling costs better than Division Y.
d.	Division X is using its assets more efficiently to generate sales than Division Y.