The manager of Healthy Snack Division of Mulchan Industries is evaluated on her division's return on investment and residual income. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000. The Snack Division's operating margin for the year was $8,687,000, during which time its average invested capital was $61,875,000.

a.	Compute the Snack Division's return on investment and residual income. (Round ROI answer to 2 decimal places. Omit the "$" & "%" signs in your response.)

Return on investment		%
Residual income	$

b.	Will the manager of the Snack Division receive a bonus for her performance? If so, how much will it be?(Round your answer to nearest dollar amount. Omit the "$" sign in your response.)

Manager's bonus

$

c.	In reporting her investment center