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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
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 $209,000 $ 16,700 $ 55,000 13% Division B $85,000 $ 9,600 $35,000 13% 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 is
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