Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales $34,680,000 $31,330,000 Operating income 2,586,100 1,252,500 Operating assets, January 1 6,391,000 5,740,000 Operating assets, December 31 7,560,000 6,430,000 Forchen, Inc., requires an 6 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ 2,202,640 2. Calculate residual income for the Cleaning Products Division. 3. What if the minimum required rate of return was 7 percent? How would that affect the residual Small Appliances Division residual income would be lower. Cleaning Products Division residual income would be lower. Check My Work