Exercise 15-15A (Algo) Residual income LO 15-7 Fanning Cough Drops operates two divisions. The following information pertains to each division for the year. Sales Operating income Average operating ansets Company's desired rate of return Division $218,000 $ 15,400 $ 55,000 175 Division $89,000 $ 9,400 $43,000 176 Required a. Compute each division's residual income b. Which division increased the company's profitability more? Residual Income Division A Division B b. The division that increased the company's profitability more in Division A