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Compute return on investment for each of these divisions (each is an investment center). Investment Center Return on Investment Cameras and camcorders Phones and communications

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Compute return on investment for each of these divisions (each is an investment center). Investment Center Return on Investment Cameras and camcorders Phones and communications Computers and accessories Net Average Income Assets $ $ 5,649,000 26,900,000 3,114,000 17,300,000 1,860,000 12,000,000 Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $6,150,000 3,255,000 850,000 Average Assets $ 21,200,000 21,700,000 17,000,000 Assume a target income of 15% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories Net income Targeted return Target income $ 21,200,000 $ 21,700,000 $ 1,700,000 15% 15% 15% $ 3,255,000 $ 255,000 Cameras and Phones and Computers and Camcorders Communications Accessories 6,150,000 $ 3,255,000 $ 850,000 Residual Income $ Net income Less: Target income Residual income (loss)

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