ABC Lumber has 2 divisions; a raw lumber division and a finished lumber division. The variable costs are: Raw lumber division: $750 per pallet of raw lumber Finished lumber division: $250 per pallet of finished lumber. Assume no lost in processing raw lumber into finished lumber. Raw lumber can be sold at $900 per pallet. Finished lumber can be sold at $1,250 per pallet. 1. Should ABC process raw lumber into finished lumber? Show your calculations. 2. Assume internal transfers are made at 125% of variable costs. Calculate divisional income. 3. Assume internal transfers are made at market price. Calculate divisional income. 4. If divisional managers get 12% bonus on divisional income, which manager will be happier with a 125% of variable cost transfer price? 5. What is the total bonus for both divisions? Assume for bonuses that figures represent thousands. Start Answer Below: Label clearly |:l