Chapter 22 Help Save & Exit Check m 11 O Required information (The following inf

Question

Chapter 22 Help Save & Exit Check m 11 O Required information (The following information applies to the questions displayed below) A food manufacturer reports the following for two of its divisions for a recent year Part 2 of 2 .25 oints Beverage Division (smillions) Divieion 4.458 4,402 Invested assets, beginning Invested assets, ending Sales Operating income $2,665 2,595 2,683 3.927 351 636 eBook Print Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. (Ent your answers in millions) (S millions) Cheese Targeted return Target income esidual Income Beverage heese Residual income

Explanation / Answer

Calculate residual income :

Beverage Cheese Average operating assets 2630 4430 Targeted return 8% 8% Target income 210.40 354.40 Residual income Beverage Cheese Actual income 351 636 Target income 210.40 354.40 Residual income 140.60 281.60

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.