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?