6. Division A, an investment center, has operating income = $40,000 for the prior period. The residual income during this period is $10,000. If Division A's investment assets = $150,000, then cost of capital set by the corporation's top management must be: 12% C 25% b. 15% d 20% 7. A division manager is considering investing in a new product. The division's income is currently $960,000 with operating assets of $16 million. The new product would increase income by $540,000 and would require an additional investment in equipment of $3 million. The ROI of the division before and after the investment is respectively: a 6% and 18% c. 7.9% and 18% b. 6% and 7.9% d. 7.9% and 6% 6. Division A, an investment center, has operating income = $40,000 for the prior period. The residual income during this period is $10,000. If Division A's investment assets = $150,000, then cost of capital set by the corporation's top management must be: 12% C. 25% b. 15% d. 20% a 7. A division manager is considering investing in a new product. The division's income is currently $960,000 with operating assets of $16 million. The new product would increase income by $540,000 and would require an additional investment in equipment of $3 million. The ROI of the division before and after the investment is respectively: 6% and 18% c. 7.9% and 18% b. 6% and 7.9% d 7.9% and 6% a