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Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $6,800,000 1,890,000 950,000 Average Assets $ 29,600,000 13,500,000 15,600,000 Assume a target
Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $6,800,000 1,890,000 950,000 Average Assets $ 29,600,000 13,500,000 15,600,000 Assume a target income of 14% 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 $ Average assets Targeted return Target income 29,600,000 14% Residual Income Computers and Accessories Net income Less: Target income Cameras and Phones and Camcorders Communications $ 6,800,000 $ 1,890,000 1,890,000 Residual income (loss)
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