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Residual Income The operating income and the amount of invested assets in each division of Otte Industries are as follows: Operating Income Invested Assets Retail

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Residual Income The operating income and the amount of invested assets in each division of Otte Industries are as follows: Operating Income Invested Assets Retail Division $40,000,000 $ 8,000,000 12,750,000 270,000 Commercial Division Internet Division 75,000,000 1,800,000 Assume that management has established a 10% minimum acceptable rate of return for invested assets. a. Determine the residual income for each division Retail Division Commercial Division Internet Division Operating income $8,000,000 $12,750,000 $270,000 Minimum acceptable operating income as a percent of invested assets Residual income b. Which division has the most residual income

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