The following selected data pertain to the Argent Division for last year:

Sales $1,000,000

Variable costs $616,000

Traceable fixed costs $150,000

Average invested capital $1,300,000

Imputed interest rate 15 %

Required:

1. How much is the residual income?

____$

2. How much is the return on investment? Enter your answer as a percentage, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent.

____%v

2.)

Manifold, Inc., is a multinational company with divisions around the world. Division X in the United States purchases a part from Division Z in China. There is no outside market for the part. The part is sold for $20 and normally receives a 35 percent markup on cost.

What is the transfer price using the resale price method? (Round the answer to two decimal places.)

a.$10.91

b.$14.81

c.$18.51

d.$11.11