Question: The following selected data pertain to the Silverthorne Division for last year: Sales ............ $1,000,000 Variable costs ........ $600,000 Traceable fixed costs ..... $100,000 Average

The following selected data pertain to the Silverthorne Division for last year:
Sales ............ $1,000,000
Variable costs ........ $600,000
Traceable fixed costs ..... $100,000
Average invested capital ...... $1,500,000
Imputed interest rate ...... 15%
Required:
1. How much is the residual income?
2. How much is the return on investment?

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