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ABC Company has provided the following data for their divisions and would like some assistance with measuring the performance of each division. Division A Division

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ABC Company has provided the following data for their divisions and would like some assistance with measuring the performance of each division. Division A Division B Division C Sales $6,000,000 $10,000,000 $8,000,000 Average operating assets $2,000,000 $5,000,000 $2,000,000 Operating Income $300,000 $900,000 $220,000 Minimum required rate of return 14% 16% 13% Compute the residual income for each division. Which division (s), if any, should be dropped based on its residual income. > MacBook Air

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