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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 $530,000 $95,400 Commercial Division 152,000 760,000 80,600 Internet Division 620,000 Assume that management has established a 12% minimum acceptable return for invested assets. a. Determine the residual income for each division. Retail Division Commercial Division Internet Division Income from operations $95,400 $152,000 $80,600 Minimum acceptable income from operations as percent of invested assets $ Residual income b. Which division has the most residual income
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