please answer both questions

Morris and Sandra are working on a project together. Morris has been asked to look into employee wages and benefits as well as the desired profit margin. Sandra is looking into all overhead costs for the company. What is the connection between these topics? O All three are used to determine the time charges within the total budgeted costs for the company. O The overhead costs for the company as well as the profit margin are used to determine employee wages and benefits. O Wages and benefits and desired profit margins are used to determine the overhead costs for the company. O All three are used to find the rate charged per hour of labor. The Wheel Division of Liberty Bicycles manufactures bike wheels and sells them to customers for $35 each. Its fixed cost per wheel is $5.20 and its variable cost is $12.95 per unit. Liberty's upper management asks the Wheel Division to transfer 30,000 wheels to another division within the company. Which of the following negotiated transfer prices between the two divisions suggests that the Wheel Division is operating with adequate excess capacity? O $10.85 $40.20 O $18.15 O $7.75