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:

Performance Suffers

A decline in the quality or efficiency of one's work or ability in specific tasks, often due to various factors like stress, burnout, or lack of practice.

Racial Profiling

The discriminatory practice by law enforcement officials of targeting individuals for suspicion of crime based on the individual's race, ethnicity, religion, or national origin.

Stereotyping

Simplifying complex individuals to generalized traits or categories based on their group membership, ignoring personal differences.

Attribution

An assignment of a cause to explain one’s own or another person’s behavior.