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Required informatio [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent
Required informatio [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. Beverage Divisiorn $2,679 2,601 2,689 Cheese Division $4,472 4,408 3,933 (Smillions) Invested assets, beginning Invested assets, ending Sales Operating income 357 642 Assume that each of the company's divisions has a required rate of return of 6%. Compute residual income for each division. (Enter your answers in millions.) $ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
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