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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.) image text in transcribed

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 income

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