Residual Income The operating income and the amount of

Last updated: 7/26/2023

Residual Income The operating income and the amount of invested assets in each division of Conley Industries are as follows Operating Income Invested Assets Retail Division 9 600 000 40 000 000 Commercial Division 12 100 000 55 000 000 Internet Division 6 480 000 36 000 000 Assume that management has established a 15 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 SA Retail Division 9 600 000 3 600 000 X Commercial Division 12 100 000 3 850 000 Retail Division 9 600 000 3 600 000 Internet Division x 6 480 000 1 080 000