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 residual incomes for the North and South Divisions?

A) $30 000 and $50 000
B) $50 000 and a negative $150 000
C) $150 000 and $50 000
D) $150 000 and $30 000