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Rooney Cough and Cold operates two divisions. The following information pertains to each division for 2018: Sales Operating income Average operating assets Company's desired rate
Rooney Cough and Cold operates two divisions. The following information pertains to each division for 2018: Sales Operating income Average operating assets Company's desired rate of return Division A $ 214,000 $ 16,200 $ 55,000 12% Division B $89,000 $ 9,900 $41,000 12% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? Residual Income a. Division A Division B The division that increased the company's profitability more is
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