The North Division of the Linus Company reported the following data for last year:

Net operating income	$200,000
Interest expense	$50,000
Tax expense	$60,000
Stockholders equity	$250,000
Average operating assets	$500,000
Minimum required rate of return	14%

A. Calculate the Residual Income for North Division (5 points).

B. Calculate the Return on Investment (ROI) for North Division (5 points).

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