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The following information is provided for each division. Investment Center Net Income Average Assets Cameras and camcorders $ 6,150,000 $ 24,200,000 Phones and communications 2,926,000
The following information is provided for each division.
Investment Center | Net Income | Average Assets | |||||
Cameras and camcorders | $ | 6,150,000 | $ | 24,200,000 | |||
Phones and communications | 2,926,000 | 20,900,000 | |||||
Computers and accessories | 950,000 | 10,800,000 | |||||
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 % % % Targeted return Target income Residual Income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income (loss)
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