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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
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 $93,600 $520,000 Commercial Division 102,400 640,000 Internet Division 36,400 260,000 Assume that management has established a 12% minimum acceptable return for invested assets. a. Determine the residual income for each division Commercial Divi Retail Division $93,600 $102,400 Income from operations Minimum acceptable income from operations as a percent of invested assets Residual income b. Which division has the most residual income
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