Listen The performance of the manager of Division A is measured by residual income. Which of the following would decrease the manager's residual income? Decrease in the minimum required rate of return Decrease in expenses Increase in sales Increase in average operating assets. Question 2 (1 point) Listen All other things being equal, a company's return on investment (ROI) would generally decrease when average operating assets increase. O average operating assets decrease. sales increase operating expenses decrease Question 3 (1 point) Listen When the Selling Division can fill all its regular orders and has enough capacity to supply the Purchasing Division, what is the highest transfer price the Purchasing Division would be willing to pay? The market price charged to regular customers less any costs saved by transferring internally. Variable cost of producing and selling a unit of product The Purchasing Division's regular purchase price from its external supplier The full absorption cost of producing a unit of product. Question 4 (1 point) 7 Listen The direct method of service department cost allocations partially recognizes that service departments often provide each other with interdepartmental services? True False