Compute residual income for each of best buy divisions

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Question: Refer to information in QS. Assume a target income of 12% of average invested assets. Compute residual income for each of Best Buy's divisions.

QS: Compute return on assets for each of these Best Buy divisions (each is an investment center). Comment on the relative performance of each investment center. Round percents to one decimal.

Investment Center                     Net Income                     Average Assets                Return on Assets

Cameras and camcorders . . . . . $4,500,000                         $20,000,000                        _________

Phones and communications . . 1,500,000                              12,500,000                        _________

Computers and accessories . . . . 800,000                              10,000,000                        _________

Reference no: EM131538722

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