11) Kraft Foods Group reports the following for two of its divisions for a recent year. All numbers are in millions of dollars.

11)

Kraft Foods Group reports the following for two of its divisions for a recent year. All numbers are in millions of dollars.

 

  ($millions) Beverage Division   Cheese Division
  Invested assets, beginning $ 2,720       $ 4,480  
  Invested assets, ending   2,930         5,360  
  Sales   3,201         4,605  
  Operating income   369         774  

 

  

Assume that each of the company’s divisions has a required rate of return of 8%. Compute residual income for each division. (Negative amounts should be entered with a minus sign. Enter your answer in millions. Round "Targeted return" to 2 decimal places. Round your answers to nearest whole dollar.)

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