Use the Hamilton Company's investment center information below to calculate (a) return on total investment and (b) investment center residual income.
$\begin{array}{llr}
\text { Net Income } &\$315,000\
\text { Average Invested Assets} &\$2,100,000\
\text { Target Net Income } & \text {6\% of division assets }
\end{array}$

Question

Use the Hamilton Company's investment center information below to calculate (a) return on total investment and (b) investment center residual income.
$\begin{array}{llr}
  \text { Net Income  } &\$315,000\
 \text {  Average Invested Assets} &\$2,100,000\
 \text {  Target Net Income } & \text {6\% of division assets  } 
\end{array}$

Quizplus · Accepted Answer

The Answer of Use the Hamilton Company's investment center information below to calculate (a) return on total investment and (b) investment center residual income.
$\begin{array}{llr}
  \text { Net Income  } &\$315,000\
 \text {  Average Invested Assets} &\$2,100,000\
 \text {  Target Net Income } & \text {6\% of division assets  } 
\end{array}$

Use the Hamilton Company's Investment Center Information Below to Calculate