Answer the Following Questions Using the Information Below:
the Bandage

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