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 9 percent cost of capital and uses beginning-of-the-year investment when computing ROI and residual income. Ignore income taxes. AC Division SO Division Allocated corp. overhead $ 600 $ 1,800 Cost of goods sold 3,200 7,000 Divisional investment 9,000 80,000 R&D 2,000 3,600 Sales 8,000 20,000 SG&A 700 1,530