Question: Subway Oil Company operates three divisions. The following pertains to each division for the prior year: Michigan Indiana Ohio Sales $7,200,000 $6,500,000 $4,000,000 Operating Income 216,000 196,000 100,000 Average Operating Assets 1,800,000 1,000,000 1,200,000 Company's desired rate of return 6% 6% 6% Compute the residual income for each division. Which division's residual income contributed the most to the company's profitability? Subway Oil Company operates three divisions. The following pertains to each division for the prior year: Michigan Indiana Ohio Sales $7,200,000 $6,500,000 $4,000,000 Operating Income 216,000 196,000 100,000 Average Operating Assets 1,800,000 1,000,000 1,200,000 Company's desired rate of return 6% 6% 6% Compute the residual income for each division. Which division's residual income contributed the most to the company's profitability? Michigan Ohio Cannot be determined Indiana