Carla Vista Industries is a decentralized company with two divisions: mining and processing. They are both evaluated as profit centres. The mining division transfers raw diamonds to the processing division. The processing division is currently operating at 1 million kg below its capacity, while the mining division is operating at full capacity. The mining division can sell raw diamonds externally at $75 per kilogram. The unit cost of 1 kg of polished diamonds produced by the processing division is as follows: $75 10 30 Raw diamonds Direct materials Direct labour ($20/hour) Variable manufacturing overhead Fixed manufacturing overhead Total unit cost 20 55 $190 Based on a capacity of 5.50 million kg per year. The processing division has just received an order from International Diamonds Co. for 320,000 kg of polished diamonds at a price of $180 per kilogram. Carla Vista has a policy that prohibits selling any product below total cost. The total cost of a kilogram of raw diamonds in the mining division is $65, of which 25% is company fixed costs. Calculate the following for Carla Vista. (Round "Variable cost of raw diamonds" answer to 2 decimal places, eg, 25.35.) Variable cost of raw diamonds $ Contribution margin from selling 320,000 kilograms of raw diamonds Contribution margin from selling 320,000 kilograms of polished diamonds $ Would Carla Vista as a whole benefit if the raw diamonds were transferred to the processing division at $65 per kilogram to fill the order from international Diamonds? Yes No Calculate the minimum and maximum transfer prices that could be used. (Round answers to 2 decimal places, e.g. 25.35.) Minimum transfer price $ Maximum transfer price $ Recommend an appropriate transfer price for raw diamonds sold by the mining division to the processing division, (Round answers to 2 decimal places, e.g. 25.35) Appropriate transtEr price $ If the mining division was not operating at full capacity, calculate the appropriate transfer price. (Round answers to 2 decimal places, eg. 25.35.) Appropriate transfer price would be between and $ Would your answer in part (d) be different? Yes No