Refer to the information in Exercise 9-11. Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division.

In Exercise 9-11

Kraft Foods Group reports the following for two of its divisions for a recent year. All numbers are in millions of dollars.

($ millions) ________________Beverage Division __________Cheese Division

Invested assets, beginning . . . . . . . . . $2,662 ............................... $4,455

Invested assets, ending . . . . . . . . . . . . 2,593 ................................. 4,400

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,681 ................................. 3,925

Operating income . . . . . . . . . . . . . . . . . . 349 .................................... 634