16.( TCO 8) Division A sells soybean paste internally to Division B, which in turn, produces soybean burgers that sell for $ 5 per pound. Division A incurs costs of $ 0.80 per pound while Division B incurs additional costs of $ 3 per pound. Which of the following formulas correctly reflects the company ' s operating income per pound?( Points: 5) 17.( TCO 8) When companies do not want to use market prices or find it too costly, they typically use ________ prices, even though suboptimal decisions may occur.( Points: 5) 17. # TCO 8 # A benefit of using a market-based transfer price is the( Points: 5) economic viability and profitability of each division can be evaluated individually. 18.( TCO 9) To guide cost allocation decisions, the benefits-received criterion:( Points: 5) 19.( TCO 9) The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $ 20,000,000 bond issuance, the Electric Mixer Division used $ 14,000,000 and the Electric Lamp Division used $ 6,000,000 for expansion. Interest costs on the bond totaled $ 1,500,000 for the year. What amount of interest costs should be allocated to the Electric Mixer Division?( Points: 5) 20.( TCO 10) The net present value method focuses on:( Points: 5) 20.( TCO 10) An important advantage of the net-present-value method of capital budgeting over the internal rate-of-return method is( Points: 5) the net present values of individual projects can be added to determine the effects of accepting a combination of projects. 21.( TCO 10) Shirt Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash inflows of $ 500,000. The required rate of return is 12 % and the current machine is expected to last for four years. What is the maximum dollar amount Shirt Company would be willing to spend for the machine, assuming its life is also four ………..( Points: 5) 21.( TCO 10) The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $ 950,000. The investment is expected to generate $ 350,000 in annual cash flows for a period of four years. The required rate of return is 14 %. The old