University Hospital provided the following segment margin income statements for two of its divisions: Diagnostic and Outpatient.Both divisions are structured as investment centers. 
The average assets for the Diagnostic and Outpatient divisions total $400,000 and $600,000, respectively.The required minimum rate of return for both divisions is 10%.
Required:
a.Calculate the current residual income for each division.
b.Why is residual income a better measure of performance for managers of investment centers than the overall profit compared to the flexible budget?
Definitions:
Alzheimer's Disease
A progressive neurodegenerative disorder characterized by memory loss, cognitive impairment, and functional decline.
Antipsychotic Medications
Drugs used to manage psychosis, including delusions, hallucinations, and disorders like schizophrenia.
Difficult To Treat
Describes medical or psychological conditions that do not readily respond to standard therapies or interventions.
Chronic Illnesses
Long-standing, persistent diseases or conditions that often require ongoing medical attention and can impact an individual's quality of life.
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