Required information [The following information applies to the questions displayed below] A manufacturer reports the following for two of its divisions for a recent month. Average assets Sales Income Beverage Division Income Less Target income Residual income $ 8,200 3,480 888 Cheese Division $ 14,800 5,640 1,280 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division. Beverage Cheese
Required information [The following information applies to the questions displayed below] A manufacturer reports the following for two of its divisions for a recent month. Average assets Sales Income Beverage Division Income Less Target income Residual income $ 8,200 3,480 888 Cheese Division $ 14,800 5,640 1,280 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division. Beverage Cheese
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
![Required information
[The following information applies to the questions displayed below]
A manufacturer reports the following for two of its divisions for a recent month.
Average assets
Sales
Income
Beverage
Division
Income
Less Target income
Residual income
$ 8,200
3,480
888
Cheese
Division
$ 14,800
5,640
1,280
Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division.
Beverage
Cheese](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcea6d65-f318-440c-bc4b-8467ef181413%2F9b0f424e-1cdf-49df-9a2d-9c7e551349e2%2Fjskor4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
A manufacturer reports the following for two of its divisions for a recent month.
Average assets
Sales
Income
Beverage
Division
Income
Less Target income
Residual income
$ 8,200
3,480
888
Cheese
Division
$ 14,800
5,640
1,280
Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division.
Beverage
Cheese
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