Residual Income The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating income Invested Assets Retail Division $128,000 $640,000 Commercial Division 79,900 470,000 Internet Division 96,000 600,000 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 Internet Division Operating income $128,000 $79,900 $96,000 Minimum acceptable operating income as a percent of invested assets Residual income b. Which division has the most residual income? Retail Division The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 2048: Cost of goods sold: Support department allocations: Commercial Division $317,840 Commercial Division $43,340 Residential Division 156,420 Residential Division 27,090 Administrative expenses: Sales: Commercial Division $57,790 Commercial Division $481,580 Residential Division 55,860 Residential Division 279,320 Prepare divisional income statements for Ruiz Industries Inc. Ruiz Industries Inc. Divisional Income Statements For the Year Ended November 30, 2048 Commercial Division Residential Division Sales Cost of goods sold Gross profit Administrative expenses Operating income before support department allocations Support department allocations Operating income