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Exercise 15-15 Residual income LO 15-7 Rundle Cough Drops operates two divisions. The following information pertains to each division for 2018: Sales Operating income Average
Exercise 15-15 Residual income LO 15-7 Rundle Cough Drops operates two divisions. The following information pertains to each division for 2018: Sales Operating income Average operating assets Company's desired rate of return Division A $205,000 $ 15,1ee $ 62,000 17% Division B $83,000 $ 9,100 $43,000 17% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income a. Division A Division B b. The division that increased the company's profitability more is
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