Baird Cough Drops operates two divisions. The following information pertains to each division for Year 1. Sales Operating income Average operating assets Company's desired rate of return Division A $218,000 $ 15,900 $ 59,000 18% Division B $87,000 $ 9,800 $44,000 18% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income a. Division A Division B b. The division that increased the company's profitability more is