The Magnetic Imaging Division of Medical Diagnostics, Inc., has reported the following results for last year's operations:

Sales 25,000,000

Net Operating Income 3,000,000

Average Operating Assets 10,000,000

Required:

1. Please Compute the Magnetic Imaging Division's margin, turnover and ROI.

2. Top management of Medical Diagnostics, Inc., has set a minimum required rate of return of return on average operating assets at 25%. What is the Magnetic Imaging Division's residual income for the year?