A companys division has sales of $4,000,000, income of $160,000, and average assets of $3,200,000. The divisions investment turnover is 1.25.

True /False

A division incurs variable costs of $300 per unit of product, and the products market price is $750 per unit. If the division has excess capacity, the range of possible transfer prices to another division is $300 to $750.

True or False

Departmental contribution to overhead is the amount of sales for that department, less its cost of goods sold and direct expenses.

True or False