Required information [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 Sales $ 5,000 Income 3,000 600 $ 10,000 5,000 800 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division. Target Income Beverage Cheese Average assets $ 5,000 $ 10,000 Targeted return Target income Residual Income 7% 7% $ 700 Beverage Cheese Residual income