Question: 1 2 please answer both question Sicilian Defence, a division of Queen's Gambit Corp. has a net operating income of $60,000 and average operating assets

Sicilian Defence, a division of Queen's Gambit Corp. has a net operating income of $60,000 and average operating assets of $300,000. The minimum required rate of return for the company is 15% the manager of the Sicilian Defence division is evaluated based on residual income, will she want to make an investment of $100.000 that would generate additional net operating income of $18,000 per year? Multiple Choice No She windert Yes Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 68 $ 52 $ 4 20,000 Division could use Division As product as a component part in the manufacture of 4,000 units of its own newly designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes thot the company's divisional managers are evaluated based their division's profits and Division A is currently selling 20.000 units on the outside market, what is lowest acceptable transfer price for Division All it were to sell 4,000 units to Division B? Maple Choice 364
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