The Hayes division of Edwards. Corp. is an investment center. It has sales of $4 million, controllable costs of $3 million, and average operating assets of $8 million. Edwards requires a minimum rate of return of 11%.

The Hayes division has a return on investment of _____ and residual income of _____.

Group of answer choices

12.5%, $120,000

25.0%, $120,000

11.0%, $1,000,000

12.5%, $1,000,000

200.0%, $7,120,000