Answer the Following Questions Using the Information Below:
Care Inc

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 return-on-investment ratios for the North and South Divisions?

A) 10.00% and 15.00%
B) 11.71% and 14.00%
C) 10.71% and 12.00%
D) 12.50% and 15.00%