Answer the Following Questions Using the Information Below:
the Bandage

question 11

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 2017 reported the following results:
$$\begin{array} { l r r } & \text { North } & \text { South } \\\text { Sales } & \$ 3000000 & \$ 2500000 \\\text { Operating profit } & 750000 & 550000 \\\text { Taxable income } & 650000 & 375000 \\\text { Investment } & 6000000 & 5000000\end{array}$$ The company's desired rate of return is 10%.Profit is defined as operating profit.
-What are the respective return-on-investment ratios for the North and South Divisions?

• A)0.108 and 0.075
• B)0.050 and 0.150
• C)0.125 and 0.110
• D)0.110 and 0.125

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Definitions:

Salaries and Wages Payable

Salaries and wages payable are current liabilities recorded on a company's balance sheet, representing the amount owed to employees for work performed that has not yet been paid.

Taxes Payable

Liabilities owed to government entities, representing taxes due to be paid by individuals or organizations.

Property Plant and Equipment

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming year.

Total Assets

The sum of all resources owned by a company as reflected on the balance sheet, including both current and non-current assets.