Wintertime Inc. reported the following operating results for its three divisions: Parkas, Scarfs, and Gloves.

	Parkas	Scarfs	Gloves
Sales	$600,000	$500,000	$300,000
Net operating income	$150,000	$120,000	$60,000
Ave. divisional operating assets	$750,000	$600,000	$400,000

Which division’s residual income would be considered as being the least favorable if Wintertime Inc.’s minimum required return on investments is 12% for all divisions.

• Scarfs Division

• Parkas Division

• Gloves

• The residual income is the same for all three divisions.