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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 $132,000
The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating income Invested Assets Retail Division $132,000 $600,000 Commercial Division 129,600 540,000 Internet Division 59,500 350,000 Assume that management has established a 10% minimum acceptable return for invested assets. a. Determine the residual income for each division. Retail Division Commercial Division Internet Division Operating income $132,000 $129,600 $59,500 Minimum acceptable operating income as a percent of invested assets Residual income $ $ $ b. Which division has the most residual income? Commercial Division Internet Division Retail Division
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