1. The income from operations and the amount of invested assets in each division of Beck Industries are as follows:

   	Income from Operations		Invested Assets
   Retail Division	$48,600		$270,000
   Commercial Division	52,500		250,000
   Internet Division	169,400		770,000

   Assume that management has established a 10% minimum acceptable return for invested assets.

   a. Determine the residual income for each division.

   	Retail Division			Commercial Division			Internet Division
   Income from operations	$48,600			$52,500			$169,400
   Minimum acceptable income from operations as a percent of invested assets
   Residual income	$			$			$

   b. Which division has the most residual income