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Investment Center Net Income Average Assets Cameras and camcorders $ 5,100,000 $ 20,300,000 Phones and communications 1,885,000 14,500,000 Computers and accessories 1,100,000 19,400,000 Assume a
Investment Center | Net Income | Average Assets | |||||
Cameras and camcorders | $ | 5,100,000 | $ | 20,300,000 | |||
Phones and communications | 1,885,000 | 14,500,000 | |||||
Computers and accessories | 1,100,000 | 19,400,000 | |||||
Assume a target income of 13% 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 |
Targeted return | |||
Target income | |||
Residual Income | Cameras and Camcorders | Phones and Communications | Computers and Accessories |
Residual income (loss) |
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