4 (3 Marks) Ahmed Ali Khan Corporation is a food manufacturer with extra capacity. A potential customer has offered to buy 3,000 units of gol gappas. Each unit of gol gappa requires 13 units of material "Chatni" and 5 units of material "Sooji". Data concerning these two materials follow: Material Chatni Units in Stock 740 Original Cost Per Unit Current Market Price Per Unit Disposal Value Per Unit Sooji 13,680 Rs.4.90 Rs.5.00 Rs.4.75 Rs.4.20 Rs.4.70 Rs.3.60 Chatni is in use in many of the company's products and is routinely replenished. Sooji is no longer used by the company in any of its normal products and the company would not be needing it in its other manufacturing later. While thinking about what should be the price of those 3,000 units of gol gappas, we need to add cost of materials to find total cost of manufacturing this product. What should be the cost (including opportunity cost) of these materials that should be added to the manufacturing cost of Gol Gappas? Question 5 (3 Marks) Division B has asked Division A of the same company to supply it with 9,000 units of part Semicon this year to use in one of its products. Division B has received a bid from an outside supplier for the parts at a price of Rs.17.00 per unit. Division A has the capacity to produce 30,000 units of part SemiCon per year. Division A expects to sell 27,000 units of part SemiCon to outside customers this year at a price of Rs.18.00 per unit. To fill the order from Division B, Division A would have to cut back its sales to outside customers. Division A produces part SemiCon at a variable cost of Rs.9.00 per unit. The cost of packing and shipping the parts for outside customers is Rs.1.00 per unit. These packing and shipping costs would not have to be incurred on sales of the parts to Division B. What would be the transfer pricing range if the divisions negotiate a price between themselves