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A food manufacturer reports the following for two of its divisions for a recent year. Beverage Division Cheese ($ millions) Division Invested assets, beginning Invested
A food manufacturer reports the following for two of its divisions for a recent year. Beverage Division Cheese ($ millions) Division Invested assets, beginning Invested assets, ending $2,676 $4,469 4,407 3,932 2,600 2,688 356 Sales Operating income 641 ssume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. (Enter our answers in millions.) ($ millions) Cheese Beverage Targeted return Target income Beverage Cheese Residual Income Residual income
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