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both A and B please Benson Cough Drops operates two divisions. The following information pertains to each division for Year 1 Sales Operating income Average
both A and B please
Benson 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 $203,000 $ 16,400 $ 63,000 125 Division $87,080 $ 9, 100 $44,000 12% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Answer is complete but not entirely correct. a Division A Division B The division that increased the company's profitability more is Residual Income $ 511,600 $ 1.8808 Division A Step by Step Solution
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