Sterling, Inc. reports the following financial information. Average operating assets............................$3,000,000 Controllable margin...................................$ 630,000 Minimum rate of return..................................$

Question:

Sterling, Inc. reports the following financial information.
Average operating assets............................$3,000,000
Controllable margin...................................$ 630,000
Minimum rate of return..................................$ 10 %
Compute the return on investment and the residual income.