Question: The operating income and the amount of invested assets in each division of Conley Industries are as follows: Retail Division Commercial Division Internet Division

The operating income and the amount of invested assets in each division

The operating income and the amount of invested assets in each division of Conley Industries are as follows: Retail Division Commercial Division Internet Division Operating income $61,200 121,800 51,800 Invested Assets $340,000 580,000 370,000 Assume that management has established a 12% minimum acceptable return for invested assets. a. Determine the residual income for each division. Operating income Minimum acceptable operating income as a percent of invested assets Residual income b. Which division has the most residual income? Retail Division $61,200 Commercial Division $121,800

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