Care Inc, Has Two Divisions That Operate Independently of One Another

question 131

Multiple Choice

Care Inc., has two divisions that operate independently of one another. The financial data for the year 2015 reported the following results:

The company's desired rate of return is 10%. Income is defined as operating income.
Which division has the best return on investment and which division has the best residual income figure, respectively?

• A) North, North
• B) South, South
• C) North, South
• D) South, North

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Definitions:

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