Use the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]A manufacturer reports the following for two of its divisions for a recent month.CheeseDivision$ 14,8005,6401,280BeverageDivisionAverage assetsSalesIncome$ 8,2003,480888Exercise 22-13 (Algo) Residual income LO A1Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for eachdivision.Target IncomeBeverageCheeseTargeted returnTarget incomeResidual IncomeBeverageCheeseResidual income

Residual income is the income excess earned from targeted income.

A manufacturer reports the following for two of its divisions for a recent month. Average assets Sales Income Beverage Division $ 8,200 3,480 888 Cheese Division $ 14,800 5,640 1,280 Exercise 22-13 (Algo) Residual income LO A1 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division.

A manufacturer reports the following for two of its divisions for a recent month. Average assets Sales Income Beverage Division $ 8,200 3,480 888 Cheese Division $ 14,800 5,640 1,280 Exercise 22-13 (Algo) Residual income LO A1 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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