Use the following information to answer questions 1 and 2.

Jacks Wax Candle Company (JWCC) provides the following financial information for fiscal year 2017:

Net sales	$5,150,000
Operating income	$525,000
Total assets at Jan. 1	4,640,000
Total assets at Dec .31	4,120,000

1. Calculate JWCCs return on investment (ROI) for 2017.

A) 10.19%

B) 11.31%

C) 11.99%

D) 12.74%

2. Assume that JWCC has a minimum required rate of return of 11.50% on its investments. Calculate JWCCs residual income for 2017.

A) ($8,600)

B) $21,300

C) $51,200

D) ($62,250)