The Bookworm Supply Company has two divisions (East and West) that operate independently of one another. The financial data for the year 2020 reported the following results:East- Sales: $3 000 000, Operating Profit:$750 000, Taxable income: 650 000, Investment: 6 000 000. West- Sales: $2 500 000, Operating profit: 550 000, Taxable income: 375 000, Investment: 5 000 000. The company's desired rate of return is 10%. Profit is defined as operating profit. What are the respective residual incomes for the East and West Divisions?

Select one:

a.$150 000 and $30 000

b.$30 000 and $50 000

c.$150 000 and $50 000

d.$50 000 and a negative $150 000

In managing inventory, the costs that result when features and characteristics of a product or service are not in conformance with the specifications are known as:

Select one:

a.design costs.

b.purchasing costs.

c.inspection costs.

d.costs of quality.