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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
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 $2,680 2,602 2,690 Cheese Division $4,473 4,499 3,934 643 358 Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. (Enter your answers in millions.) (5 millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
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