Exercise 9-10A (Algo) Residual income LO 9-3 Thornton 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 es a. Compute each division's residual income. Division A Division B $ 204,000 $ 78,000 $ 15,200 $ 53,000 15% $ 9,200 $ 43,000 15% b. Which division increased the company's profitability mor? a. Division A Division B b. The division that increased the company's profitability more is Residual Income