Answer the Following Questions Using the Information Below:
Care Inc

question 9

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.
-What are the respective residual incomes for the North and South Divisions?

Understand the impact of sales capacity on full-capacity sales levels.

Forecast net income based on changes in sales and costs.

Estimate the potential for sales increase without requiring additional fixed assets.

Understand the concept and components of job design.

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Definitions:

Osmotic Diuretics

Substances that increase urine output by altering the osmotic balance of the filtration processes in the kidneys, often used to treat fluid retention.

Thiazide Diuretics

A class of medications that act on the kidneys to promote sodium, chloride, and water excretion, used primarily to treat high blood pressure.

ADH Inhibitors

Compounds that block the action of antidiuretic hormone (ADH), affecting the body's ability to regulate water retention.

Plasma Clearance

The rate at which a substance is removed from the blood plasma, indicating the efficiency of the kidneys in filtering and excreting substances.