Reference no: EM131818194

Question - Residual income in a multiproduct company Based on an analysis of operations, a company making sporting goods has determined that the income provided by its golf, ski, tennis, and football product lines are $3.5 million, $7.8 million, $2.6 million, and $1.7 million, respectively. The accountant believes that the investment levels in these product lines are $35 million, $50 million, $45 million, and $23 million, respectively. Use a residual income analysis to evaluate the performance of each of these product lines, assuming that the organization requires a 10% return on investment.