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Problem 13-39 Residual Income (LO 13-2, 13-4) Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent year. Income

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Problem 13-39 Residual Income (LO 13-2, 13-4) Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent year. Income Average invested capital ROI Division I $ 900,000 $6,000,000 15% Division II $ 200,000 $1,000,000 20% Required: 1. Compute each division's residual income for the year under each of the following assumptions about the firm's cost of acquiring capital. a. 12 percent. b. 15 percent. c. 18 percent. Division 1 Division II Residual income at 12 percent. Residual income at 15 percent. Residual income at 18 percent

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