The following selected data pertain to Beck Co.'s Beam Division for last year:

Sales .................................................................$2,000,000

Variable expenses ...............................................$800,000

Traceable fixed expenses ....................................$900,000

Average operating assets ....................................$500,000

Minimum required rate of return ...............................20%

The traceable fixed expenses do not include any interest expense.

a. How much is the residual income?

b. How much is the return on the investment?