Betsy Ltd produces garden furniture in its two divisions A and B. Division A produces the garden chairs and then transfers them to Division B, who varnish them and sell them to national garden centres for 60 per chair. The budgeted data for the month is: Division A Division B Units transferred/sold 25,000 25,000 Annual fixed costs 65,000 35,000 Material costs per unit 7 2 Labour costs per unit 6 4 Other variable costs per unit 2 2 Required: a. Prepare profit statements for each of the divisions and also for the company as a whole, if the transfer price from Division A to B is: (i) 20 per unit (ii) 25 per unit b. Comment upon the results with the 2 different transfer prices and on the motivational impact on the two divisional managers. c. Discuss the problems that arise specifically when determining transfer prices where divisions are located in different countries