of the following can increase a company's return on investment? A) decrease in operating income B) decrease in total assets C) decrease in asset turnover ratio D) decrease in residual income n, Inc. has average total assets of $300,000. The annual operating income of the company is $200,000. The target rate of return for the company is 15%. Calculate the residual income. A) $45,000 B) $100,000 C) $30,000 D) $155,000 31) When a division is operating at capacity, the transfer price should A) based on opportunity cost B) a market-based transfer price C) a cost-based transfer price D) the total manufacturing cost be 32) Raphael, Inc. has a division that manufactures a component that sells for $170 and has a variable cost of $50. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $24. What is the minimum transfer price if the division is operating below its capacity? A) $170 B) $50 C) $74 D) $24