Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income ($ millions) Targeted return Target income Residual Income Residual income Assume that each of the company's divisions has a required rate of return of 6%. Compute residual income for each division. (Enter your answers in millions.) Beverage Beverage Division Beverage $2,684 2,604 2,692 360 Cheese Cheese Division Cheese $4,477 4,411 3,936 645

Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income ($ millions) Targeted return Target income Residual Income Residual income Assume that each of the company's divisions has a required rate of return of 6%. Compute residual income for each division. (Enter your answers in millions.) Beverage Beverage Division Beverage $2,684 2,604 2,692 360 Cheese Cheese Division Cheese $4,477 4,411 3,936 645

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 1CE: Forchen, Inc., provided the following information for two of its divisions for last year: Required:...

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Required information [The following information applies to the questions displayed below.] ACME Food Manufacturing reports the following for two of its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning Invested assets, ending $2,675 2,599 2,687 $4,468 4,406 3,931 Sales Operating income 355 640 Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
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