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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 Retal Division $50,000

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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 Retal Division $50,000 $250,000 Commercial Division 165,000 750,000 Internet Division 158,400 660,000 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 $50,000 Internet Division $158,400 $165,000 Operating income Minimum acceptable operating income as a percent of invested assets Residual income b. Which division has the most residual income

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