Question: Kelfour Enterprises has divided its operations into two divisions. Relevant accounting data for each division is as follows: Divisions Sales Operating Assets Operating Income Western

Kelfour Enterprises has divided its operations into two divisions. Relevant accounting data for each division is as follows:

Divisions Sales Operating Assets Operating Income
Western Division $ 150,000 $ 100,000 $ 15,000
Eastern Division $ 300,000 $ 150,000 $ 16,500

Based on this information:

a. The Eastern Division is outperforming the Western Division because it has more operating income.

b. The Eastern Division is outperforming the Western Division because it has more operating assets.

c. The Eastern Division is outperforming the Western Division because it has more sales revenue.

d. None of the answers is correct.

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