Boat Hull Manufacturing produces boat parts at the manufacturing facility in Virginia. The managerial accountant reported that Boat Hull Manufacturing manufactures parts to repair the container ships that import products from China. The main part that Boat Hull Manufacturing produces is the T24 part. The Port Department produces the T24 part at the Boat Hull Manufacturing facility in Virginia. The managerial accountant reported that the Deport Department could also produce the T24 part because there is excess capacity at the facility. The managerial accountant reported the current market price of the T24 part is $1,250 and reported the following manufacturing cost and expenses data: Boat Hull Manufacturing Manufacturing Costs and Variable Expense Report T24 Part Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (current production level) Variable selling expenses (only incurred on sales to outside consumers) $940 $182 $120 $130 $95 What is the highest transfer price the selling division would receive, and the buying division would pay, for the T24 part? O A. $1,250 B. $940 C. $1,122 D. $1,242 The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from the past year. Shareholders require a return of 8%. Management calculated a weighted - average cost of capital (WACC) of 3%. The company's corporate tax rate is 25%. Sales Operating income Total assets Current liabilities $700,000 140,000 $1,300,000 400,000 What is the division's Residual Income (RI)? A. $35,000 B. $36,000 C. $101,000 OD. $84,000