Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division Cheese Division $2,701 $4,494 2,613 4,420 2,701 3,945 369 654 Assume that each of the company's divisions has a target income at 3945% of average assets. Compute residual income for each division. Target Income Beverage Cheese Average assets $ 2,701 $ 369 Targeted return 3,945% 3,945% Target income $ 14,557 Residual Income Beverage Cheese Income $ 2,701 $ 4,420 Less: Target income Residual income