1.2.

Which of the following is a criticism of return on investment (ROI)? Multiple Choice A manager who takes over a business segment usually inherits many committed costs that they cannot control, but that influence the calculation of ROI. O A manager's non-operating assets are excluded from the calculation of ROI. O A manager can control turnover, but is unable to control margin even though it influences the calculation of ROI. A manager can control margin, but is unable to control turnover even though it influences the calculation of ROI. 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 $ 44 $ 4 20,000 Division B 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 $61 from an outside supplier for a component part that is comparable to the one that Division A makes. If the company's divisional managers are evaluated based on their division's profits and Division A is currently selling 20,000 units on the outside market, what is the range of acceptable transfer prices between the two divisions? Multiple Choice $58 s Transfer prices $61 $54 s Transfer price s $61 $60 s Transfer prices $61