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Required information [The following information applies to the questions displayed below) Oxford Company has two divisions. Thames Division, which has an investment base of $81,700,000,

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Required information [The following information applies to the questions displayed below) Oxford Company has two divisions. Thames Division, which has an investment base of $81,700,000, produces and sells 1,000,000 units of a product at a market price of $144 per unit its variable costs total $42 per unit. The division also charges each unit 70 of fixed costs based on a capacity of 1050,000 units Lakes Division wants to purchase 230,000 units from Thames. However, it is willing to pay only $138 per unit because it has an opportunity to accept a special order at a reduced price. The order is economically justifiable only if Lakes can acquire Thames output at a reduced price Required: What is the Rol for Thames without the transfer to Lakes? (Round your answer to 2 decimal places.) b. What is Thames ROI it transfers 230.000 units to Lakes at $138 each? (Round your answer to 2 decimal places.) c. What is the minimum transfer price for the 230,000 unit order that Thames would accept if it were willing to maintain the same ROI with the transfer as it would accept by selling its 1000,000 units to the outside market? (Round your answer to 2 decimal places.) Answer is not complete. 37 333 % b ROY ROL Min transfer price por un

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