Rundle Cough Drops operates two divisions. The following information pertains to each division for the year. Division A Division B Sales Operating income $217,000 $ 15,200 $91,000 $ 8,900 Average operating assets $ 57,000 $39,000 Company's desired rate of return 12% 12% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? a. Division A Division B b. The division that increased the company's profitability more is Residual Income