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 _________