Colonial Pharmaceuticals is a small firm specializing in new products. It is organized into two divisions, which are based on the products they produce. AC Division is smaller and the life of the products it produces tend to be shorter than those produced by the larger SO Division. Selected financial data for the past year is shown below. Divisional investment is as of the beginning of the year. Colonial Pharmaceuticals uses a 10 percent cost of capital and uses beginning-of-the-year investment when computing ROl and residual income. Ignore income taxes Allocated corp. overhead Cost of goods sold Divisional investment R&D Sales SG&A AC Division $ 680 3,360 10,600 2,800 11,200 SO Division 1,000 5,400 72,000 2,800 12,000 940 730 Required: a. Compute divisional income for the two divisions AC Division SO Division Divisional income