Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales $34,670,000 $31,310,000 Operating income 2,359,700 1,252,800 Operating assets, January 1 6,395,000 5,740,000 Operating assets, December 31 7,600,000 6,090,000 Forchen, Inc., requires an 7 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 8 percent? How would that affect the residual income of the two divisions? uld that affect the 3. What if the minimum required rate of return was 8 per residual income of the two divisions? higher. lower. Small Appliances Division residual income would be unaffected. Cleaning Products Division residual income would be