Response to the following problem:
Schulz GmbH, a German company, set an 18 percent target rate of return for its U.S. division for 2010. For 2010, the U.S. division generated $39,000,000 of revenue on average assets of $25,000,000. The division's variable costs were 45 percent of sales, and fixed costs were $6,750,000.
Compute the following items for the U.S. division for 2010:
a. ROI
b. Residual income
c. Profit margin
d. Asset turnover