A food manufacturer reports the following for two of its divisions for a recent year.

($ millions)	Beverage Division				Cheese Division
Invested assets, beginning	$	2,675			$	4,468
Invested assets, ending		2,599				4,406
Sales		2,687				3,931
Operating income		355				640

Exercise 22-13 Residual income LO A1

Assume that each of the companys divisions has a required rate of return of 8%. Compute residual income for each division. (Enter your answers in millions.)

($ millions)	Beverage	Cheese
Average assets
Targeted return	8%
Target income	$2,889
Residual Income	Beverage	Cheese
Operating income	$355	$640
Less: Target income
Residual income