Residual Income Leesum Company has two divisions: the Leone Division and the Letwo Division. The following information pertains to last year's results: In addition, Leesum Company's top management has set a minimum acceptable rate of return equal to 10%. Required: Enter negative values as negative numbers. 1. Calculate the residual income for the Leone Division. 2. Calculate the residual income for the Letwo Division. The Orlon Division of Mondragon Company had operating income last year of $112,400 and average operating assets of $730,000. Mondragon's minimum acceptable rate of return is 5%. Required: 1. Calculate the residual income for the Orlon Division. Round your answer to the nearest dollar. Residual income \$ x 2. Was the ROI for the Orlon Division greater than, less than, or equal to 5% ? Feedback Check My Work Compute the residual income = operating income - (minimum rate of return average operating assets) Review the "How to Calculate Residual Income" example in your text