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accounting The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions: the Perfume Division and the Bottle Division. The company

accounting

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The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions: the Perfume Division and the Bottle Division. The company is decentralised and each division is evaluated as a profit centre; The Bottle Division produces bottles that can be used by the Perfume Division which produces perfume. The following information relates to the production of bottles. Bottle Division Production capacity 50, 000 Internal demand from Perfume Division 50, 000 External demand Market price ($) Variable costs per unit (35): -Processing cost Shipping cost Fixed cost per month ($) Question 1 Calculate the total opportunity cost Bottle Division will incur if they meet the internal demand from Perfume Division MC] Question 2 Calculate the transfer price of one bottle using the general transferpricing formula. Please round your answer to 2 dec places. MC]

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