E1325 Comparing the performance of two divisions: retail company L0 13.4, 13.5 Oatley Fabrics Company has two retail divisions, which reported the following results for last year: Furnishing division Dressmaking division Prot $ 1 350 000 $ 300 000 Average invested capital $ 9 000 000 $1 500 000 R01 15% 20% Required: 1. Which was the more successful division? Think carefully about this, and explain your answer. 2. Calculate each division's residual income under each of the following assumptions about the rm's minimum required rate of return: (a) 12 per cent (b) 15 per cent (c) 18 per cent