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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.

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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 Cheese Division Division Average assets $ 6,608 $ 12,400 Sales 3, 240 5,320 Income 744 1, 040Required 1 Required 2 Required 3 Compute return on investment. Return on Investment Numerator: Denominator: Division Return on investment Beverage S Cheese \fRequired 1 Required 2 Required 3 Compute investment turnover. Investment Turnover Numerator: Denominator: Division Investment turnover Beverage Cheese 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 Targeted return Target income Residual Income Beverage Cheese Residual income

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