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Wheeler Company Provided the Following Selected Information About Its Consumer  Desired ROI 10% Net Income $140,000 Residual Income $100,000\begin{array} { l c } \text { Desired ROI } & 10 \% \\\text { Net Income } & \$ 140,000 \\\text { Residual Income } & \$ 100,000\end{array}

Question 4

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Wheeler Company provided the following selected information about its consumer products division for 2012:  Desired ROI 10% Net Income $140,000 Residual Income $100,000\begin{array} { l c } \text { Desired ROI } & 10 \% \\\text { Net Income } & \$ 140,000 \\\text { Residual Income } & \$ 100,000\end{array}
a) Based on this information, what was the division's investment amount (amount of operating assets)?
b) Based on residual income, did the division meet the target set by Wheeler?

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a) $400,000 (Of the amount of net income...

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