Ribocon Corp. has established a 12 percent target ROI for 2013 for its Lynchfield Division. The following

Question:

Ribocon Corp. has established a 12 percent target ROI for 2013 for its Lynchfield Division. The following data have been gathered for the division’s operations for 2013: average total assets, $ 14,200,000; revenues, $ 28,000,000; and expenses, $ 26,500,000. What is the division’s residual income? Did the division successfully meet the target ROI?