Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: Retail Division Wholesale DivisionOperating income$2,500,000 $6,000,000 Operating assets$16,000,000 $36,000,000 Terra Company has set a target return on investment (ROI) of 15% for both divisions. Based on ROI, which division appears to have performed better?
A. Wholesale division.
B. Retail division.
C. Both divisions have the same results.
D. The answer cannot be determined using the information provided.
Answer: A
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