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20 Investment Center Net Income Average Assets Cameras and camcorders $ 5,950,000 $ 22,100,000 Phones and communications 1,965,000 13,100,000 Computers and accessories 900,000 10,800,000 Assume
20
Investment Center | Net Income | Average Assets | |||||
Cameras and camcorders | $ | 5,950,000 | $ | 22,100,000 | |||
Phones and communications | 1,965,000 | 13,100,000 | |||||
Computers and accessories | 900,000 | 10,800,000 | |||||
Assume a target income of 15% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.)
Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $4,500,000 1,500,000 800,000 Average Assets $20,000,000 12,500,000 10,000,000 Assume a target income of 12% of average invested assets. Required: Compute residual income for each division. 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 incomeStep by Step Solution
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