8. Consider this partial report from a Solver sensitivity report:

Cutting department time used: Shadow price = $2; The maximum constraint = 160 hours; The allowable increase = 90 and the allowable decrease = 50. What is the range of hours available over which the shadow price will remain valid?

a.	110 to 250	c.	140 to 280
b.	50 to 90	d.	160 to infinity

9. In a decentralized organization, Co. X, Division A is evaluated according to ROI, while Division B is evaluated according to residual income. Of Co.X, Div. A and Div.B, which is more likely to make an investment decision that will hurt Co. Xs income?

a.	Co. X	c.	Division B
b.	Division A	d.	All are equally likely to do this

10. Division A, an investment center, has operating income = $80,000 for the prior period. The residual income during this period is $20,000. If Division As investment assets = $300,000, then cost of capital set by the corporations top management must be:

a.	12%	c.	20%
b.	15%	d.	25%

11. A division manager is considering investing in a new product. The divisions income is currently $465,000 with operating assets of $8 million. The new product would increase income by $270,000 and would require an additional investment in equipment of $1.5 million. The ROI of the division before and after the investment is respectively:

a.	5.8% and 7.7%	c.	7.7% and 5.8%
b.	11.6% and 15.8%	d.	Cannot determine