As the Staff Accountant for Investment Centers Beta and Gamma,compute

Essay

As the staff accountant for Investment Centers Beta and Gamma,compute the residual income for each investment center,using the following information:
$$\begin{array} { | l r r | } \hline & \text { Beta } & \text { Gamuma } \\\text { Operating income } & \$ 850,000 & \$ 1,000,000 \\\text { Actual ROI } & 28 \% & 49 \% \\\text { Desired ROI } & 32 \% & 35 \% \\\text { As5ets invested } & \$ 585,000 & \$ 750,000 \\\hline\end{array}$$