Results from Quinn Corporation's most recent year of operations are presented in the following table:
Operating income ................... $ 8,800
Total assets ............................ $16,000
Current liabilities ................... $ 3,600
Sales ...................................... $35,200
Target rate of return ................... 14%
Requirements
1. Calculate the sales margin, capital turnover, and return on investment (ROI).
2. Calculate the residual income.