Answer and Explanation:
The calculation of the residual income for each division is given below:
<u>Target Income    Cameras & Camcorders Phones & Comm Computers & Acc.
</u>
Average Assets	$20,600,000         $21,500,000               $16,600,000
Target Return                14%                       14%                              14%
Target Income        $2,884,000           $3,010,000                  $2,324,000
<u>Residual Income    Cameras & Camcorders Phones & Comm Computers & Acc.</u>
Net Income              $6,800,000               $3,010,000           $1,100,000
Less: Target Income  $2,884,000           $3,010,000            $2,324,000
Residual Income       $3,916,000              $0                         -$1,224,000