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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. Beverage Cheese ($ millions) Division Division $2,700 $4,493 Invested assets, beginning Invested assets, ending Sales 2,612 4,419 2,700 3,944 Operating income 368 653
Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Beverage Cheese Targeted return Target income Residual Income Residual income