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Zachary 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
Zachary 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 $ 202,000 $ 16,900 $ 62,000 15% Division B $72,000 $ 8,600 $40,000 15% 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
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