Check my werk 2 Part 2 of 2 1 0.12 points Required information [The following information applies to the questions displayed below) Oxford Company has two divisions. Thames Division, which has an investment base of $80,000,000 produces and sells 900,000 units of a product at a market price of $140 per unit, its variable costs total $40 per unit. The division also charges each unit $70 of fixed costs based on a capacity of 1000,000 units. Lakes Division wants to purchase 200,000 units from Thames. However, it is willing to pay only $80 per unit because it has an opportunity to accept a special order of a reduced price. The order is economically justifiable only if Lakes can acquire Thames output at a reduced price ook Division managers are evaluated using residual income using a 13 percent cost of capital Required: a. What is the residual income for Thames without the transfer to Lakes? b. What is Thames's residual income if it transfers 200,000 units to Lakes at $80 each? c. What is the minimum transfer price for the 200.000 unit order that Thames would accept if it were willing to maintain the same residual income with the transfer as it would accept by selling its 900.000 units to the outside market? $ 25 a Residual income Residual income Minimum transfer price per unit