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c) d) The directors of Fido Dido agreed that a machine that would increase annual production capacity to 50,000,000 cans at Division X will
c) d) The directors of Fido Dido agreed that a machine that would increase annual production capacity to 50,000,000 cans at Division X will be purchased. The purchase of this machine will increase the net assets of Division X by RM500,000. Assume that there is no impact on unit variable costs or fixed costs resulting from this purchase. Calculate the minimum transfer price per can that Division X could charge for the 20 million cans required by Division Y in order for Division X to achieve the target. ROI. (7 marks) Explain ONE (1) non-financial measure that could also be used to monitor the performance of the manager of Division Y against the objectives of Fido Dido. (2 marks) Total: 22 marks]
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