When the selling division in an iThe Ace Division of LaBate Company makes and sells only one product. Annual data on the Axle Division's single product follows:Unit Selling Price$50Unit Variable Cost$30Total Fixed Costs$200,000Invested Capital$750,000Cost of Capital12% 24. If Axle sells 15,000 units per year, what would be the residual income?a)$10,000b)$30,000c)$50,000d)$100,000nternal transfer has unsatisfied demand from the external customers for the product that is being transferred. What is the lowest acceptable transfer price as far as the selling division is concerned? a)Variable cost of producing a unit of productb)The full absorption cost of producing a unit of productc)The market price charged to the outside customers, less any costs saved by transferring internallyd)The amount that the purchasing division would have to pay an outside seller to acquire a similar product for its use