Vernon Cough Drops operates two divisions. The following information pertains to each division for the year. Sales Division A Division B $205,000 $90,000 Operating income $ 15,900 $ 9,000 Average operating assets. $ 57,000 Company's desired rate of return. $42,000 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