Double K Corp. has established a 12 percent target ROI for 2010 for its Jamestown Division. The

Question:

Double K Corp. has established a 12 percent target ROI for 2010 for its Jamestown Division. The following data have been gathered for the division's operations for 2010: average total assets, $11,200,000; revenues, $30,000,000; and expenses, $28,000,000. What is the division's residual income? Did the division successfully meet the target ROI?