Answer the Following Questions Using the Information Below

question 41

Multiple Choice

Answer the following questions using the information below:
The Bandage Medical Supply Company has two divisions that operate independently of one another. The financial data for the year 2012 reported the following results:
The company's desired rate of return is 10%. Income is defined as operating income.
-What are the respective residual incomes for the North and South Divisions?

• A)$60,000 and $100,000
• B)$300,000 and $60,000
• C)$300,000 and $100,000
• D)$100,000 and a negative $300,000