Return on Investment and Residual Income The Emergency Medical Services Company has two divisions that operate independently of one another. The financial data for the year 20X5 reported the following results: Sales North South $4,200,000 $3,700,000 Operating income 1,050,000) 850,000 Taxable income Investment 875,000 600,000 6,000,000 5,000,000 The company's desired rate of return is 10%. Income is defined as operating income a. What are the respective return-on-investment ratios for the North and South divisions? Round ROI to the nearest whole percentage ROI North South b. What are the respective residual incomes of the North and South divisions? North South Residual Income c. Which division has the better return on investment and which division has the better residual income figure? Return on investment