1.)Which of the following is a difference between economic value added (EVA) and residual income? a. Economic value added (EVA) lays emphasis on before-tax operating profit and the actual cost of capital, whereas residual income uses minimum expected rate of return. b. Economic value added (EVA) lays emphasis on minimum expected rate of return, whereas residual income uses before-tax operating profit and the actual cost of capital. c. Economic value added (EVA) lays emphasis on minimum expected rate of return, whereas residual income uses after-tax operating profit and the actual cost of capital. d. Economic value added (EVA) lays emphasis on after-tax operating profit and the actual cost of capital, whereas residual income uses minimum expected rate of return. 2.) AquaShine Inc. has a number of divisions, including the Beige Division, a producer of fabric, and the Purple Division, a fabric painting division. The cost per yard of the cloth manufactured by Beige Division of the AquaShine Inc. is as follows: Direct material $18 Direct labor $5 Variable overhead $2 Fixed overhead $5 Calculate the transfer price if the company allows transfer pricing at cost plus 10%. a. $27 b. $35 c. $30 d. $33