A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,668 2,596 2,684 352 Cheese Division $4,461 4,403 3,928 637 Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division your answers in millions.) (5 millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,668 2,596 2,684 352 Cheese Division $4,461 4,403 3,928 637 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment. (Enter your answers in millions.) Return on Investment Return on Investment Choose Numerator: Choose Denominator: Investment Center Operating income Average invested assets Beverage $ 352 $ 2,632 Cheese $ 637 $ 4.432 = Return on investment 13.37% / 14.37% Required Required 2 > ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,668 2,596 2,684 352 Cheese Division $4,461 4,403 3,928 637 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute profit margin. (Enter your answers in millions.) Profit Margin Choose Numerator: 1 Choose Denominator: Investment Center Operating income Sales Beverage $ 352 $ 2,684 Cheese $ 637 3,928 Profit Margin Profit margin 13.11% GA 11 16.22% ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,668 2,596 2,684 352 Cheese Division $4,461 4,403 3,928 637 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute investment turnover for the year. (Enter your answers in millions.) Investment Center Investment Turnover Choose Numerator: Choose Denominator: Sales 1 Average invested assets $ 2,684 $ 2,632 $ 3,928 $ 4,432 HI Investment Turnover Investment turnover 1.02 11 Beverage Cheese 0.89