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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
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 $58,000 $290,000 Commercial Division 167,200 760,000 Internet Division 66,000 440,000 Assume that management has established 12% minimum acceptable return for invested assets . Determine the residual income for each division Retail Division Commercial Division Internet Division $58,000 $167,200 Operating income 566,000 Minimum acceptable operating income as a percent of invested assets Residual income b. Which division has the most residual income? Commercial Division Internet Division Retail Division
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