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Residual Income The operating income and the amount of invested assets in each division Conley Industries are as follows: Operating income Invested Assets Retail Division
Residual Income The operating income and the amount of invested assets in each division Conley Industries are as follows: Operating income Invested Assets Retail Division $108,300 $570,000 Commercial Division 90,200 410,000 Internet Division 199,200 830,000 Assume that management has established a 12% minimum acceptable return for invested assets. a. Determine the residual income for each division. Retail Division Commercial Division Internet Division Operating income $108,300 590,200 $199,200 Minimum acceptable operating income as a percent of invested assets Residual income $ b. Which division has the most residual income
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