Exercise 15-15A (Algo) Residual income LO 15-7 Franklin Cough Drops operates two divisions. The following information pertains to each division for the year. Division B Division A Sales Operating income Average operating assets $201,000 $ 15,300 $74,000 $ 9,100 $ 54,000 $44,000 Company's desired rate of return 11% 118 Required a. Compute each division's residual income. b. Which division increased the company's profitability more? a. Division A Division B b. The division that increased the company's profitability more is Residual Income