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Care Inc., has two divisions that operate independently of one another. The financial data for the year 2015 reported the following results: North South Sales

Care Inc., has two divisions that operate independently of one another. The financial data for the year 2015 reported the following results:

North South

Sales $6,000,000 $5,000,000

Operating income 1,700,000 1,300,000

Taxable income 1,700,000 775,000

Investment 15,000,000 11,000,000

The company's desired rate of return is 10%. Income is defined as operating income.

Which division has the best return on investment and which division has the best residual income figure, respectively?

A.

South, South

B.

South, North

C.

North, North

D.

North, South

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