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($millions) Beverage Division Cheese Division Invested assets, beginning $2,662 $4,455 Invested assets, ending 2,593 4,400 Sales 2,681 3,925 Operating income 349 634 RESIDUAL INCOME REFER

($millions) Beverage Division Cheese Division
Invested assets, beginning $2,662 $4,455
Invested assets, ending 2,593 4,400
Sales 2,681 3,925
Operating income 349 634

RESIDUAL INCOME

REFER TO THE INFORMATION ABOVE. aSSUME THAT EACH OF THE COMPANY'S DIVISION HAS A REQUIRED RATE OF RETURN OF 7%. cOMPUTE RESIDUAL INCOME FOR EACH DIVISION.

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