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The following information is provided for each division. Investment Center Net Income Average Assets Cameras and camcorders $ 5,300,000 $ 24,800,000 Phones and communications 2,898,000
The following information is provided for each division.
Investment Center | Net Income | Average Assets | |||||
Cameras and camcorders | $ | 5,300,000 | $ | 24,800,000 | |||
Phones and communications | 2,898,000 | 20,700,000 | |||||
Computers and accessories | 1,000,000 | 15,800,000 | |||||
Assume a target income of 14% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.)
The following information is provided for each division. Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $5,300,000 2,898,000 1,000,000 Average Assets $ 24,800,000 20,700,000 15,800,000 Assume a target income of 14% 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 % % % Average assets Targeted return Target income Residual Income Net income Less: Target income Residual income (loss) Cameras and Camcorders Phones and Communications Computers and Accessories
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