1. The operating income and the amount of invested assets in each division of Otte Industries are as follows:

   	Operating Income		Invested Assets
   Retail Division	$157,500		$750,000
   Commercial Division	147,600		820,000
   Internet Division	91,000		350,000

   Assume that management has established a 8% minimum acceptable rate of return for invested assets.

   a. Determine the residual income for each division.

   	Retail Division	Commercial Division	Internet Division
   Operating income	$157,500	$147,600	$91,000
   Minimum acceptable operating income as a percent of invested assets	fill in the blank 1	fill in the blank 2	fill in the blank 3
   Residual income	$fill in the blank 4	$fill in the blank 5	$fill in the blank 6

   b. Which division has the most residual income?

   Retail DivisionCommercial DivisionInternet Division

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