A hammer manufacturer, Asgard Industries, has 3 divisions: Loki, which processes heavy steel; Odin, which molds extra heavy-duty hammerheads; and Thor, which manufactures fasteners and attaches hammerheads to handles. The manager of each division receives annual bonuses based on their individual division's profit. They each have full decision-making authority on whether to sell to internal or external customers, set prices, and negotiate transfer prices if they decide to purchase or sell from/to an internal division. Currently, the manager of the Odin division has limited capacity and has two orders she must choose between (see below). The company's fixed overhead will not be impacted by the decision. "Order 1: Thor division would like to purchase 2,000 hammerheads for a price of $1,600 each. To manufacture each hammerhead, Odin would need to purchase a block of steel from the Loki division at a transfer price of $455 each. Odin division's variable cost to further process the steel into a hammerhead is $470. Five of Odin's machine hours would be required for each; Odin's fixed manufacturing overhead rate is $23 per machine hour. The variable cost incurred by Loki for each block of steel is $200. It uses 2.5 machine hours for each and has a fixed manufacturing overhead rate of $38 per machine hour. If this order is not chosen, the Thor division will have to buy hammerheads from Hela Corporation at a price of $1,600 each. Hela Corporation would be purchasing the steel from Asgard's Loki division for $380 per block. While the machine hours used by Loki would still be 2.5, the division's variable cost would only be $175 per unit because of a slight difference in the specifications." Order 2: Odin division could sell 2,500 hammerheads to Bor Incorporated at a price of $1,200 each. Odin would purchase a steel block from Loki for $200 to make each lightweight hammerhead. The variable cost to Loki for each block would be $100 and each would require two of Loki division's machine hours. Odin would incur an additional variable cost of $465 per hammerhead and use four machine hours to process. All requirements should be supported by well-formatted, clearly presented schedules of calculations Requirement 1: What is the difference between the two options for the Odin division? Which should the manager of the Odin division choose to maximize her division's profit (and her annual bonus)? Requirement 2: What is the difference between the two options for Asgard Industries as a whole? Which of the two alternatives should be selected to benefit the company?