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A food manufacturer reports the following for two of its divisions for a recent year. ($millions) Invested assets, beginning Invested assets, ending Sales Operating income
A food manufacturer reports the following for two of its divisions for a recent year. ($millions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $3,100 3,000 2,696 364 Cheese Division $5,900 5,800 3,940 649 Assume that each of the company's divisions has a required rate of return of 6.00%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
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