ch 9 q 5

Mesidual Income The income from operations and the amount of invested assets in each division of teck Industries are as follows: Assume that management has established a \8 minimum acceptable return for invested assets. a. Determine the residual income for each division. Feetoack T Creck My Wor a. Subtract the minimum acceplable income from operatons as a percent of imested asseta. b. Compare the results for the divions Leaming Oojective 4