$1500, and demand for this product currently exceeds the division's ability to supply the marketplace. awards bonuses to divisional management based on their division's performance. Required 1. How might South Island's divisional manager react to the decision to transfer diode reducers to North Island? Show calculations to support your answer. 2. How might North Island's divisional management react to the $2250 transfer price? Show calculations to support your answer. 3. Assume that a lower transfer price is desired. Should head office management lower the price or should the price be lowered by another means? Explain. 4. From a contribution margin perspective, does SFTL benefit more if it sells the diode reducers externally or transfers the reducers to North Island? By how much