QS 24-11 Computing residual income LO A1

Investment Center	Net Income				Average Assets
Cameras and camcorders	$	6,150,000			$	26,900,000
Phones and communications		2,170,000				15,500,000
Computers and accessories		1,050,000				17,400,000

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
Targeted return
Target income
Residual Income	Cameras and Camcorders	Phones and Communications	Computers and Accessories
Residual income (loss)