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

	Beverage Division	Cheese Division
Average assets	$ 8,800	$ 15,700
Sales	3,570	5,760
Income	942	1,370

Assume that each of the companys divisions has a target income at 7% of average assets. Compute residual income for each division.

Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division. Target Income Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income