The Beatrice company has two divisions, North and South, both of which are treated as investment centers.The following information was collected from the divisions' 2019 financial statements:

North South

Net operating income (in $ thousands) 19243 9255

Sales (in $ thousands) 188833 96060

End of year operating assets (in $ thousands) 63440 30358

Variable cost (as a fraction of total costs) 0.65 0.63

Average selling price per unit 12.81 12.12

a.Calculate North division's ROI

b.What is North division's residual income (report in thousands of dollars as a whole number)?

c.Calculate South division's ROI

d.What is South division's residual income (report in thousands of dollars as a whole number)?