Exercise 9-10A Residual income LO 9-3 Rundle Cough Drops operates two divisions. The following information pertains to each division for 2017: Sales Operating income Average operating assets Company's desired rate of return Division A $ 219,000 $ 15,900 $ 62,000 Division B $87,000 $ 9,800 $38,000 16% 16% 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