Abbygail Books has two divisions, Edmonton and Toronto, and their results for 2011 were as follows:

The company’s desired rate of return is 22%.

What are the respective return-on-investment ratios for the Edmonton and Toronto divisions?

a. 41%; 37%

b. 27%; 30%

c. 5%; 8%

d. None of the above

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Edmonton Toronto Sales Cost of goods sold $5,500,000 $7,000,000 2,000,000 2,500,000 S & A expenses 1,250,000 1,900,000 Operating income 2,250,000 2,600,000 Investment base (total assets) 8,200,000 8,700,000