Red Earth Company has two divisions, the Okla Division and theHoma Division. Last year, the Okla Division earned $66,000 usingaverage operating assets of $550,000. Last year, the Homa Divisionearned $260,000 using average operating assets of $2,000,000.Minimum required rate of return for Red Earth is 9 percent.
A. For the Okla Division, residual incomeis
B. For the Homa Division, residual incomeis
Now assume that the minimum required rate of return for RedEarth is 12 percent. If an amount is zero, enter "0".
C. For the Okla Division, residual incomeis
D. For the Homa Division, residual incomeis