Snickers Company has two investment centers and has developed the following information. Snickers Company expects a minimum return on operating assets of 10%.
|
Department A |
Department B |
|
|
Net operating income |
$120,000 |
$48,000 |
|
Average operating assets |
$1,200,000 |
$400,000 |
|
Sales |
800,000 |
250,000 |
Required: What was the amount of residual income for each department?