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The following information is provided for each division. Investment Center Cameras and camcorders Phones and communications Net Income $6,950,000 Average Assets $ 25,400,000 15,900,000 2,226,000
The following information is provided for each division. Investment Center Cameras and camcorders Phones and communications Net Income $6,950,000 Average Assets $ 25,400,000 15,900,000 2,226,000 Computers and accessories 1,150,000 12,800,000 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 Targeted return Target income Residual Income Residual income (loss) Cameras and Camcorders % Phones and Communications % Computers and Accessories Computers and Accessories %
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