Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Sales Operating income Operating assets, January 1 Operating assets, December 31 Small Appliances Cleaning Products Division Division $34,650,000 $31,380,000 2,406,200 1,252,800 6,397,000 5,710,000 7,500,000 6,700,000 Forchen, Inc., requires an 6 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ 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 income of the two divisions? Small Appliances Division residual income would be Cleaning Products Division residual income would be