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Division ABC has $750,000 invested in assets and earned $200,000 in income. Division XYZ has $800,000 invested in assets and earned $210,000 in income. The company's target rate is 10%. Which division has the highest residual income

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The division that has the highest residual income is:.Division XYZ.

Residual income

Residual income for ABC

Residual income=200,000-(0.10×750,000)

Residual income=200,000-75,000

Residual income=$125,000

Residual income for XYZ

Residual income=210,000 -(0.10×80,000)

Residual income=210,000-80,000

Residual income=$130,000

Inconclusion the division that has the highest residual income is:.Division XYZ.

Learn more about residual income here:https://brainly.com/question/22985922

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