Exercise 9-10A (Algo) Residual income LO 9-3 Benson Cough Drops operates two divisions. The following information pertains to each division for Year 1. Sales Operating income Average operating assets Company's desired rate of return Required a. Compute each division's residual income. es Division A Division B $ 210,000 $ 77,000 $ 15,500 $ 58,000 16% $ 9,600 $ 44,000 16% b. Which division increased the company's profitability more? a. Division A a. Division B b. The division that increased the company's profitability more is Residual Income