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

Operating incomeInvested AssetsRetail Division$85,800 $390,000 Commercial Division142,500 570,000 Internet Division83,700 310,000

Assume that management has established a 10% minimum acceptable return for invested assets.

a. Determine the residual income for each division.

Retail DivisionCommercial DivisionInternet DivisionOperating income$85,800 $142,500 $83,700 Minimum acceptable operating income as a percent of invested assetsfill in the blank 1 fill in the blank 2 fill in the blank 3 Residual income$fill in the blank 4 $fill in the blank 5 $fill in the blank 6

b. Which division has the most residual income?

Commercial DivisionInternet DivisionRetail DivisionCommercial Division