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Exercise 15-15 Residual income LO 15-7 Rooney Cough Drops operates two divisions. The following information pertains to each division for 2018: Division A Sales $217,000
Exercise 15-15 Residual income LO 15-7 Rooney Cough Drops operates two divisions. The following information pertains to each division for 2018: Division A Sales $217,000 Operating income $ 16,400 Average operating assets $ 59,000 Company's desired rate 13% of return Division B $72,000 $ 9,800 $43,000 13% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income a. Division A Division B The division that increased the company's b. profitability more is
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