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Required information Skip to question [The following information applies to the questions displayed below.] A manufacturer reports the following for two of its divisions for
Required information
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[The following information applies to the questions displayed below.]
A manufacturer reports the following for two of its divisions for a recent month.
| Beverage Division | Cheese Division | |
|---|---|---|
| Average assets | $ 9,000 | $ 16,000 |
| Sales | 3,600 | 5,800 |
| Income | 960 | 1,400 |
Assume that each of the companys divisions has a target income at 7% of average assets. Compute residual income for each division.
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