Check my work 5 Walton Cough Drops operates two divisions. The following information pertains to each division for the year. Sales 1 Operating income points Division A $201,000 Division B $76,000 $ 15,700 $9,600 Average operating assets $ 59,000 $38,000 Company's desired rate of return 15% 15% eBook Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Hint References a. Division A Division B b. The division that increased the company's profitability more is Residual Income