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Baird Cough Drops operates two divisions. The following information pertains to each division for the year. Sales Operating income Average operating assets Company's desired rate
Baird Cough Drops operates two divisions. The following information pertains to each division for the year. Sales Operating income Average operating assets Company's desired rate of return Division A $ 214,000 $ 16,190 $ 62,000 15% Division B $81,000 $ 9,200 $40,000 15% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Resuar Incom a. Division A Division B b. The division that increased the company's profitability more is
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