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The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating Income Invested Assets Retail Division $136,800

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The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating Income Invested Assets Retail Division $136,800 $720,000 Commercial Division 112,200 660,000 Internet Division 103,600 740,000 Assume that management has established a 8% minimum acceptable return for invested assets. a. Determine the residual income for each division Commercial Division Retail Division $136,800 Internet Division Operating income $112,200 Minimum acceptable operating income as a percent of invested assets $103,600 Residual income b. Which division has the most residual income

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