Wellinghouse Industries has established a 10 percent target ROI for its divisions. The following data have been

Question:

Wellinghouse Industries has established a 10 percent target ROI for its divisions. The following data have been gathered for the Ionia Division's operations for the previous year: Revenues = $30,000,000; Expenses = $28,000,000; Invested capital = $11,200,000. Did the Ionia Division meet the ROI target? What is the Ionia Division's residual income?