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