Assignment Chapter 11 Exercise 1: Eban Wares is a division of a major corporation. The following data are for the latest year of operations: Sales ........ $10,890,000 Net operating income $609,840 Average operating assets .. .............. $3,000,000 The company's minimum required rate of return ............ 16% Required: a. What is the division's margin? b. What is the division's turnover? c. What is the division's return on investment (ROI)? d. What is the division's residual income? Exercise 2: Given the following data: Return on investment .... 25% Sales ................................. $100,000 Average operating assets ... . .... $40,000 Turnover 2.5 Minimum required rate of return ............... 18% Margin on sales ...... 10% Required: Calculate the Residual Income. Exercise 3: The following information relates to last year's operations at the Paper Division of Germane Corporation: Minimum required rate of return ............... 15% Return on investment (ROI) ................... 18% Sales ............. $810,000 Turnover (on operating assets) ................. 5 times What was the Paper Division's net operating income last year