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Perez Cough Drops operates two divisions. The following information pertains to each division for the year. Sales Operating income Average operating assets Company's desired rate

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Perez Cough Drops operates two divisions. The following information pertains to each division for the year. Sales Operating income Average operating assets Company's desired rate of return Division A $216,000 $ 16 000 $ 57,000 14% Division B $73,000 $10,000 $44,000 1498 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

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