! Required information Use the following information for the Exercises below. (Algo) [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 Income $ 8,000 3,450 870 $ 14,500 5,600 1,250 Exercise 22-13 (Algo) Residual income LO A1 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 Targeted return Beverage Cheese Target income Residual Income Beverage Cheese Residual income