1A)

B)

Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $4,850,000 2,385,000 1,150,000 Average Assets $ 29, 300,000 15,900,000 15,600,000 Assume a target income of 15% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories Targeted return Target income Residual Income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income (loss) Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). (Round Contribution percent to 1 decimal place.) Answer is not complete. Dept. Dept. A Dept. B Sales Cost of goods sold Gross profit Total direct expenses Contribution to overhead Contribution percent (of sales) $63,000 39,690 23,310 5.940 $57,060 90.6% 218,000 113,360 104,640 48,400 82,000 43,460 38,540 8,486 169,600 77.8% 77.8%