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Residual Income The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested

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Residual Income The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $72,000 $400,000 Commercial Division 162,000 810,000 Internet Division 68,200 310,000 Assume that management has established a 10% minimum acceptable return for invested assets. a. Determine the residual income for each division Retail Division Commercial Division $162,000 Internet Division $68,200 $72,000 Income from operations Minimum acceptable income from operations as a percent of invested assets Residual income b. Which division has the most residual income? Commercial Division Check out Suttract the minimum acceptable income from operations as a percent of invented b. Compare the sults for the divisions

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