Hudson Company has two divisions. The following information is available:

Require d:

Using operating income after taxes as the inco me measure, compute the following for each division:

A$)$ Return on investment. $2\mathrm{.}5$ pts

B$)$ Return on sales $2\mathrm{.}5pts$

C$)$ Capital turnover $2\mathrm{.}5pts$

D$)$ Residual income $2\mathrm{.}5pts$

Which division is more successful? Why? $2$pts