Question: Please answer all questions if possible! (Please write out correct answer and whether its A, B, C or D.) Thank you! Which division has a

Which division has a positive residual income if the company has a minimum return on investment of 30%? Division B C D Income from operations $100,000 $200,000 $200,000 $100,000 Invested assets $1,000,000 $500,000 $1,000,000 $500,000 O Division C O Division A O Division B O Division D Division A manufactures electronic circuit boards. They can either be sold to Division B of the same company or to an outside supplier. Division A and Division B have these income and cost structures: Division A Division B Sales price $1,000 per unit $2,000 per unit Expenses: Variable $700 per unit $1,200* per unit * $1,000 for materials and $200 for other conversion costs within Division B Fixed costs $50,000 in total $100,000 in total Assume that Division A has excess capacity. Division A will produce 10,000 units of the materials currently purchased by Division B from an outside supplier. What is the transfer price that Division A should charge Division B to divide the cost savings equally between the divisions? O $850 per unit O $700 per unit O $1,000 per unit $820 per unit
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