Answer the Following Questions Using the Information Below:
Care Inc

question 18

Multiple Choice

Answer the following questions using the information below:
Care Inc., has two divisions that operate independently of one another. The financial data for the year 2015 reported the following results:
$$\begin{array} { l r r } & \text { North } & \text { South } \\\text { Sales } & \$ 6,000,000 & \$ 5,000,000 \\\text { Operating income } & 1,500,000 & 1,200,000 \\\text { Taxable income } & 1,200,000 & 700,000 \\\text { Investment } & 14,000,000 & 10,000,000\end{array}$$ 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?

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Definitions:

Funder's First Law

A principle in psychology that holds people are almost always in a better position to observe their own behavior than anyone else is.

Largest

Refers to the highest in size, amount, degree, or capacity.

Smallest

Pertaining to the least in size, amount, degree, or the like.

Scientific Education

The process of teaching and learning about scientific concepts, methods, and the natural world through observation and experimentation.