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

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Residual Income The operating income and the amount of invested assets in each division of Sadie Industries are as follows: Operating Invested Income Asseta Retail Division $151,100 $500,000 Commercial Division 139,000 380,000 Internet Division 154,000 610,000 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 Minimum acceptable operating Income as a percent of invested assets Residual income b. Which division has the most residual income

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