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The following information is provided for each division. Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income Average Assets $4,500,000 $
The following information is provided for each division. Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income Average Assets $4,500,000 $ 20,000,000 1,500,000 12,500,000 800,000 10,000,000 Assume a target income of 12% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories % % % Targeted return Target income Residual Income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income (loss)
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