Residual Income The income from operations and the amount of invested assets in each division of Beck Industries are as follows:   Income from Operations Invested Assets Retail Division $46,800   $260,000   Commercial Division 116,000   580,000   Internet Division 84,000   600,000   Assume that management has established a 12% minimum acceptable return for invested assets.   a.  Determine the residual income for each division.   Retail Division Commercial Division Internet Division Income from operations $46,800 $116,000 $84,000 Minimum acceptable income from operations 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? Commercial Division

Residual Income The income from operations and the amount of invested assets in each division of Beck Industries are as follows:   Income from Operations Invested Assets Retail Division $74,100   $390,000   Commercial Division 159,600   760,000   Internet Division 84,000   560,000   Assume that management has established a 12% minimum acceptable return for invested assets.   a.  Determine the residual income for each division.   Retail Division Commercial Division Internet Division Income from operations $74,100 $159,600 $84,000 Minimum acceptable income from operations 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?

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The following information is provided for each division. Net Income $6,100,000 2,758,000 1,000,000 Investment Center Cameras and camcorders Phones and communications Computers and accessories Assume a target income of 14% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Targeted return Target income Residual Income Residual income (loss) Cameras and Camcorders Cameras and Camcorders Average Assets $ 25,700,000 19,700,000 10,400,000 % Phones and Communications Phones and Communications % Computers and Accessories Computers and Accessories %