Inman Company has two fabric divisions, Cotton and Wool. The following information is available: 
Compute the following for each division:
a. ROI.
b. income percentage of revenue.
c. capital turnover.
d. residual income.
Definitions:
Absorption Costing
A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.
Total Period Cost
The sum of all costs incurred during a specific financial period, encompassing both manufacturing and non-manufacturing expenses.
Absorption Costing
An accounting method that includes all manufacturing costs (both fixed and variable) in the cost of a product.
Net Operating Income
The profitability measure that calculates the amount of money a company makes from its primary business operations, excluding costs and expenses related to financing and taxes.
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