B. Tough Home Berhad is a medium-sized windows manufacturer in East Coast region of Malaysia. Tough Home has two departments: Design and Installation. Design produces window frames that can be sold either to outside or transfers to the Installation. Installation installs glass to the frames before selling them to the market. Design currently sells frame windows directly to custom home builders with a selling price of RM160 and variable costs of RM78 each. Installation needs 1,320 frames monthly and is currently purchasing them from SafeHome Company at a cost of RM138 per frame. Assuming Design produces and sells 3,800 frames each month. Required: a) If Design sells 1,200 frames to outside market, and Installation asks to supply the frames at RM122 each, should both managers agree with this transaction? Explain and support with calculation (if any). (2 marks) b) If Design sells 3,600 frames to outside market, and Installation asks to supply the frames at RM122 each, should both managers agree with this transaction? Explain and support with calculation (if any). (7 marks) c) Installation wants to buy the frames from SafeHome Company. For installing glasses to the frames, Installation needs an investment of RM87,000 to buy a special equipment. Each frame requires a piece of glass with a cost of RM27, direct labor costs and manufacturing overhead (40% variable), RM18 and RM14, respectively. The variable selling and administrative is RM3 per unit and total fixed selling and administrative RM650 per month. All the windows produced can be sold every month. However, Tough Home's management is unsure of how Installation price their windows because of the decrease in their net profit. Therefore, the management of Tough Home asks Installation to change the current pricing approach. Calculate the target selling price if the company decides to use cost-plus pricing approach based on 35% return on investment (ROI). S (7 marks)