The following selected data pertain to the belt division of Allen Corp. for last year:

Sales $500,000

Average Operating Assets $200,000

Turnover 2.5 times

Minimum required return 20.0%

1. The Return on Investment 2 marks
2. The Residual Income 2 marks

Harstin Corporation has provided the following data:

Sales $625,000

Gross Margin $ 70,000

Operating Income $ 50,000 Shareholders Equity $ 90,000

Average Operating Assets $250,000

Residual Income $ 20,000

Compute the following:

3. The Margin 2 marks
4. The Turnover 2 marks