Walton Cough Drops operates two divisions. The following information pertains to each division for 2018:...
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Walton Cough Drops operates two divisions. The following information pertains to each division for 2018: Division Division Sales Operating income Average operating assets 60,000 $37,000 Company's desired rate of return $205,000 $86,000 $ 15,100 9,600 12% 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 b. The division that increased the company's profitability more is
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