Fort Company has two divisions that are expected to earn the same required rate of return. Division 1 has net income of $20,000 and the residual income of $4,000. Division 2 has net income of $10,000 and the residual income of $3,000. Which the following is true?

a. Division 2 has a lower ROI and more than half the assets of Division 1

b. Division 1 has a higher ROI but lower assets than Division 2

c. Division 1 has at least twice as much assets as Division 2 but a lower ROI

d. Division 2 has a higher ROI and more than half the assets of Division 1

e. None of the above