1. The following data pertain to the Belt Division of Allen Corp:

   Sales	$2,000,000
   Average operating assets	$500,000
   Net operating income	$100,000
   Minimum required rate of return	18%

   The divisions ROI (return on investment) is:

   	A.	25%
   	B.	20%
   	C.	5%
   	D.	2%

2. The division's residual income is:

   	A.	$90,000
   	B.	$80,000
   	C.	$0
   	D.	$10,000