Calculating Residual income Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division $34,660,000 $31,390,000 1,254,300 Sales Operating income Operating assets, January 1 Operating assets, December 31 2,581,700 6,396,000 7,520,000 5,770,000 6,060,000 Forchen, Inc., requires an 7 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. S 2. Calculate residual income for the Cleaning Products Division. S 3. What if the minimum required rate of return was 8 percent? How would that affect the residual income of the two divisions? Small Appliances Division residual income would be Cleaning Products Division residual income would be