11)

Kraft Foods Group reports the following for two of its divisions for a recent year. All numbers are in millions of dollars.

($millions)	Beverage Division		Cheese Division
Invested assets, beginning	$	2,720		$	4,480
Invested assets, ending		2,930			5,360
Sales		3,201			4,605
Operating income		369			774

Assume that each of the company?s divisions has a required rate of return of 8%. Compute residual income for each division.(Negative amounts should be entered with a minus sign. Enter your answer in millions. Round "Targeted return" to 2 decimal places. Round your answers to nearest whole dollar.)

Please see attached file millions net income targeted return target income beverage cheese beverage cheese Residual income average assets less:target income residual income