33.

If the residual income calculated for a division is a negative number, then which of the following must be true?

		a. the division's ROI exactly equals its minimum required rate of return.
		b. the division's ROI exceeds its minimum required rate of return.
		c. the division's ROI is less than its minimum required rate of return.

36.

Buenos Company has two divisions, Division X and Division Y. Division X has a production capacity of 6,000 units per month. Division X sells 4,600 units each month to outside customers, earning a contribution margin of $36 per unit. Division Y would like to buy 2,000 units each month from Division X. How much must Division X add to the transfer price to recover the margin given up from lost external sales?

		a. $25.20.
		b. $36.00.
		c. $5.40.
		d. $10.80.