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 lite 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 ROl and residual income Ignore income taxes. AC Division S0 Division S 1 200 5.800 74.000 3,000 14.000 Allocated corp Cost of goods sold Divisional investment R&D Sales SG&A corp. overhead 660 3,320 10,200 2,600 10,400 880 930 Required 3. Compute divisional income for the two divislons Divisional income b. Calculate the operating margin, which is equvalent to the return on sales, for the two disions. (Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.16 Operating margin e. Calculate ROl for the two divisions. (Enter your answers as a percentage rounded to 2 decimal places (.e., 32.16).) ROI d. Compute residual income for the two divisions. (Negative amounts should be indicated by a minus sign.) Residual income