Eddys Cough Drops operates two divisions. The following information pertains to each division for 2005. Required a.
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a. Compute each divisions residual income.
b. Which division increased the companys profitabilitymore?
Transcribed Image Text:
Division A Division B Sales Operating income Average operating assets Company's desired rate of return S150,000 S 15,040 S 63,000 18% $54,000 S 8,100 S45,000 18%
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a Division A Residual income 15040 18 x 63000 3700 D...View the full answer
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