Exercise 15-15A (Algo) Residual income LO 15-7 Campbell Cough Drops operates two divisions. The following information pertains to each division for the year. Sales Operating income Average operating assets Company's desired rate of return Division A $208,000 $ 15,800 $ 59,000 12% Division B $82,000 $ 9,500 $39,000 12% 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 Division A