The Nashville Division of Country Classics currently reports a prot of $2.7 million. Divisional invested capital totals $8.6 million; the imputed interest rate is 15%. On the basis of this information, Nashville's residual income is: M ultiple Choice $1,290,000. $885,000. None of the answers is correct. $1,410,000. 00000 $40500 0. Darrin's Auto Northern Division is currently purchasing a part from an outside supplier. The company's Southern Division, which has no excess capacity. makes and sells this part for external customers at a variable cost of $13 and a selling price of $25. If Southern begins sales to Northern. it (1) will use the general transferpricing rule and (2) will be able to reduce variable cost on internal transfers by $3. On the basis of this information, Southern would establish a transfer price of: Multiple Choice $10. None of the answers is correct. $25. $13. $22. @0000 Vello, Inc. reported a return on investment of15%, a capital turnover of 5, and income of $229,500. On the basis of this information, the company's invested capital was: Multiple Choice $30690 0, $1,147,500. $1,530,000, 531650000, None of the answers is correct. OOOOO Endotrope Corporation has an after-tax operating income of $3,280,000 and a 11% weighted-average cost of capital. Assets total $7,080,000 and current liabilities total $1,880,000. On the basis of this information, Endotrope's economic value added is: Multiple Choice O $2,294,400. O $2,708,000. O $3,852,000. O $4,265,600. O None of the answers is correct.Overton Company uses costbased transfer pricing. Its Food Processing Division has a standard variable cost of $9.20 per case and allocated xed overhead of $2.60. The Processing Division, which has excess capacity, sells its output to external customers for $12.70 per case. If Overton uses full (or absorption) cost as its base, the transfer price charged to its Retail Division should be: Multiple Choice $11.80. $12.70. $15.30. $9.20 plus a markup, negotiated between the managers ofthe Processing and Retail Divisions. OOOOO