There are TWO questions, please help

(Chegg guidelines SUGGEST one question per post for a faster response time but we are more than welcome to ask multiple questions)

1. Calculate the residual income with the following data:

• Controllable margin $398,877
• Minimum Rate of Return 9%
• Average Operating Assets $2,161,862

Round to the nearest whole dollar, no decimal places. Note: Controllable margin is the same as net income for a segment with control over the costs. Minimum rate of return is the same as the cost of capital.

2. Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $13. Division B produces Component X and has excess capacity.

Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the market-based transfer price?

• Variable cost per unit $9
• Fixed cost per unit 1.95
• Division B sales price of Component X 14.5

Round to two decimal places.