Refer to the data for problem 13€“36 regarding Omaha Grain Company.
In problem 13€“36, Omaha Grain Company has two divisions, which reported the following results for the most recent year.

Required:
Compute each division€™s residual income for the year under each of the following assumptions about the firm€™s cost of acquiring capital.
1. 12 percent.
2. 15 percent.
3. 18 percent.
Which division was most successful? Explain youranswer.

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Division I $2,700,000 $18,000,000 15% Division II $600,000 $3,000,000 20% Income Average invested capital ROI