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