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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

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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 $138,600 $630,000 Commercial Division 96,900 510,000 Internet Division 85,000 500,000 Assume that management has established a 10 minimum acceptable return for invested assets, a. Determine the residual income for each division Retail Division Internet Division Commercial Division $96.900 $138,600 Operating Income Minimum acceptable operating income as a percent of invested assets $35,000 Residual income b. Which division has the most residual income

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