Vicon Manufacturing Bhd has reported the following results for last years operation:

Sales	RM30 million
Net operating income	RM 5 million
Average operating assets	RM 15 million

Required:

(a) Compute Vicon Manufacturing Bhds margin.

[ 3 marks ]

(b) Compute Vicon Manufacturing Bhds turnover.

[ 3 marks ]

(c) Compute the Vicon Manufacturing Bhds return on investment.

[ 3 marks ]

(d) Chief Executive Officer of Vicon Manufacturing Bhd has set a minimum required rate of return on average operating assets of 20%, What is the Vicon Manufacturing Bhds residual income for the year?

[ 4 marks ]

(e) Explain the relationship between return on investment and residual income.

[ 6 marks ]

(f) Why return on investment and residual income are important for performance measurement in decentralised organisation?

[ 6 marks ]