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Leesum Company has two divisions: the Leone Division and the Letwo Division. The following information pertains to last year's results: Leone Division Letwo Division Net
Leesum Company has two divisions: the Leone Division and the Letwo Division. The following information pertains to last year's results: Leone Division Letwo Division Net (after-tax) income $611,050 $315,000 Total capital employed 4,800,000 3,412,500 In addition, Leesum Company's top management has set a minimum acceptable rate of return equal to 11%. Required: Enter negative values as negative numbers. 1. Calculate the residual income for the Leone Division. $ 2. Calculate the residual income for the Letwo Division
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