Can you provide the solution for 12.41. Thanks

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615 CHAPTER TWELVE MANAGING AND REPORTING MANAGING AND REPORTING PERFORMANCE 12.41 Multiple 012.13 Reebut Division. The m markets will alw ltiple interdivisional transfers; accept or reiect outside contract: man butt Industries consists of three decentralised divisions: Cromwell DIVISIO tside contract: manufacturer ision. The managing director of Reebutt Industries has given the manage ivisions: Cromwell Division, Brandon Division and Gerard thority to decide whether to sell their products outside the company or between u has given the managers of the three divisions the ce they negotiate. The external market for the company's products is very mpetitors, so sales made internally or externally by the divisions will not a mpany's products is very active and there are many rkets will always be available for Cromwell, Brandon and Gerard to purcha e divisions will not affect market prices. Intermediate their product. Each division's manager attempts to maximise its contribution brandon and Gerard to purchase their manufacturing needs or operating assets for the division. yer attempts to maximise its contribution margin at the current level of The manager of Brandon Division is currently Division is currently considering the following two orders: Gerard Division needs 5000 units of a motor that can be supplied by Brand these motors, Brandon would purchase components from Cromwell DIVISIO motor that can be supplied by Brandon Division. To manufacture per unit. Cromwell's variable cost for these components is $550 per unit.ba omponents from Cromwell Division at a transfer price of $1000 process these components at a variable cost of $850 per unit. ents is $550 per unit. Brandon Division would further Westminster Company wants to order 4500 motors from the Brandon Divisio o motors from the Brandon Division. This is a custom-built product and the price will be $2075 per unit. Brandon would purchase components for Cromwell Division at a transfer price of $850 per unit. Cromwell's variable cost O per unit. Cromwell's variable cost for these components is $475 per unit. Brandon Division will further process these components at a varial will further process these components at a variable cost of $700 per unit. Brandon DIVISIONS plant capacity is limited, and the division can accept either the Westminster company Brandon Division's plant capacity is limite order or the Gerard order, but not both. The managing director of Reebutt Industries and me Brandon Division agree that it would not be beneficial to increase capacity. If Gerard Division cannot obtain the motors from Brandon Division, it will purchase the motors from Fawkes Company, which has offered to supply the same motors to Gerard Division at a price of $2 350 per unit Fawkes Company would also purchase 5000 components from Cromwell Division at a price of $700 eact Cromwell's variable cost for these components is $400 per unit. Required: 1. If the manager of Brandon Division wants to maximise the division's short-run contribution marg determine whether Brandon Division should: (a) sell motors to Gerard Division at the prevailing market price; or (b) accept the Westminster Company order. 2. Independent of your answer to requirement 1, assume that Brandon Division decides to accep Westminster Company contract. Determine whether this decision is in the best interests of Re Industries. cases -.42 Business unit profit statement: manufacturer 66 Asian Style Industries is a diversified company whose products are marketed both domes internationally. The company's major product lines are furniture, sports equipment and household: At a recent meeting of the board of directors there was a lengthy discussion on ways to impr corporate profitability. The members of the board decided that they required additional financial about individual corporate operations in order to target areas for improvement. Danielle Murphy, the financial controller, has been asked to provide additional data that wo board in its investigation. Murphy believes that pront statements, prepa Murphy believes that profit statements, prepared along both prod would provide the director uld provide the directors with the required insight into operations. Murph