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Rooney 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

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Rooney 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 $207,000 $ 15,600 $ 57,000 16% Division B $ 74,000 $ 8,800 $41,000 16% 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 Division A

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