Campbell Cough Drops operates two divisions. The following information pertains to each division for Year $1.$

Division A Division B

Sales $ $205,000$ $ $75,000$

Operating income $ $16,700$ $ $8,500$

Average operating assets $ $58,000$ $ $39,000$

Company's desired rate of return $14\%14\%$

Required

Compute each division$$s residual income.

Which division increased the company$$s profitability more?