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QS 22-11 Computing residual income Lo Al Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $ 6,100,000 2,475,000 900,000 Average
QS 22-11 Computing residual income Lo Al Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $ 6,100,000 2,475,000 900,000 Average Assets $ 24,800,000 16,500,000 17,400,000 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 $ Average assets Targeted return Target income 24,800,000 15% $ 16,500,000 15% $ 2,475,000 Phones and Communications $ 2,475,000 $ 17,400,000 15% $ 2,610,000 Computers and Accessories $ 900,000 Residual Income Cameras and Camcorders $ 6,100,000 Net income Less: Target income Residual income (loss)
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