Grumbley1622 Grumbley1622

13-12-2022
Business

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Gletchen Cough Drops operates two divisions. The following information pertains to each division for 2017: Division A Division BSales $ 480,000 $300,000Operating income $ 32,000 $ 24,000 Average operating assets $200,000 $160,000Company's desired rate of return 10% 10% Required a. Compute each division's residual income. b. Which division increased the company's profitability more?

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