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A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning $

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

($ millions) Beverage Division Cheese Division
Invested assets, beginning $ 2,668 $ 4,461
Invested assets, ending 2,596 4,403
Sales 2,684 3,928
Operating income 352 637

Assume that each of the companys divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.)

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Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income

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