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[The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. Beverage
[The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. Beverage Division $2,665 2,595 2,683 Cheese Division $4,458 4,402 3,927 (Smillions) Invested assets, beginning Invested assets, ending Sales Operating income 351 636 Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. Enter your answers in millions.) $ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
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