If average operating assets are $200,000, the turnover is 2.0, the return on investment (ROI) is 30%, and the minimum required rate of return on average operating assets is 10%, then the residual income is closest to: Multiple Choice $40,000 $60,000 $100,000 $80,000 Assume a company reported the following information: Sales Minimum required rate of return on average operating assets Turnover Return on investment (ROI) $900,000 104 1.5 12 The residual income is closest to: Multiple Choice $18,000 $16.000 $12.000 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 $ 60 $ 43 $ 4 20,000 Division could use Division A's 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 supplied for a component part that is comparable to the one that Division A makes. If the company's divisional managers are evaluated based their division's profits and Division A is currently selling 18,000 units on the outside market, what is the range of acceptable transfer prices between the two divisions? Multiple Choice $55.00 Transfer prices $5700 $5150 Transfer prices $50.00 Assume a company has only one service department and two operating departments (A and B). The service department's budgeted and actual variable costs for the period were $80,000 and $88,000, respectively. The budgeted and actual units of service provided to the operating departments were as follows: Department A Department B Total Budgeted Unito of Service 16,000 24,000 40,000 Actual Units of Service 16,200 27,600 43,800 How much of the service department's variable costs should not be charged to either Department A or B? Multiple Choice $8,000 $400 $4,200