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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 ROI and residual income. Ignore income taxes, e Division Division Allocated corp. overhead $ $1,000 Coat of goods sold 3,360 Divisional investment 10.600 72,000 2,00 2,800 11.200 12.000 680 5,400 RED Sale SGGA 940 730 Required: a. Compute divisional income for the two divisions. b. Calculate the operating margin, which is equivalent to the return on sales, for the two divisions c. Calculate ROI for the two divisions. d. Compute residual income for the two divisions. Complete this question by entering your answers in the tabs below. Required Required 8 Required Required Compute divisional income for the two divisions AC Division 3 Division Divisional income Regulado Required A Required B Required Required D 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 (.e., 32.16).) AC Division SO Division Operating margin % Complete this question by entering your answers in the tabs below. Required a Required B Required Required D Calculate Rol for the two divisions. (Enter your answers as a percentage rounded to 2 decimal places (.e., 32.16).) AC Division SO Division ROL %

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