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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

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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 as follows. 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 Required: a. Compute divisional income for the two divisions. b. Calculate the operating margin, which is equivalent to the retum on sales, for the two divisions. c. Calculate ROl for the two divisions. d. Compute residual income for the two divisions. Complete this question by entering your answers in the tabs below. Compute divisional income for the two divisions. Complete this question by entering your answers in the tabs below. Calculate the operating margin, which is equivalent to the return on sales, for the two divisions. (Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.16).) Complete this question by entering your answers in the tabs below. Calculate ROt for the two divisions. (Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.16 ).) Complete this question by entering your answers in the tabs below. Compute residual income for the two divisions. (Negative amounts should be indicated by a minus sign.)

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