Cheesy Treats Pty Ltd are a famityowned business that operate in Australia. Part of the business is made up of two departments; the butter department and the cheese department. The butter department processes the butter to transfer and supply the cheese department in order to manufacture their cheese based products. The butter department is currently operating at full capacity. One of the butter products that the butter department sells to the cheese department is low fat cheese. The costs of producing the low fat butter product by the butter department are: labour costs at $0.35 per kilo, raw materials at $0.20 per kilo and allocated fixed operating costs at $0.15 per kilo. The butter department can sell the low fat butter product to outside customers for $0.90 per kilo. The cheese department have been approached by Bega (another major cheese producer] who have offered to sell them the low fat butter required to make their cheese products. They have currently negotiated a selling price to the cheese department of $0.75 per kilo. The department manager of the cheese department is considering this offer and believes it may potentially be a good option for their department. The current costs incurred by the cheese department are the cost of the butter as well as further processing costs that include variable manufacturing costs of $0.10 per kilo and additional marketing expenses of $0.15 per kilo to advertise for the sale of its product. The cheese departments se=lls its cheese to customers external of the business for $1.50 per kilo. Required: Please ensure that you show all formulas and workings. Marks will be deducted if these are not shown. a) Calculate the transfer price for the butter by the butter department to the cheese department given the scenario above. [4 marks] b) Would it he in the best interests of Cheesy Treats for the cheese department to purchase their butter from Bega? Assume that the butter department has snare capacig and no other opportunity to sell their butter to external buyers. Provide calculations of costs and prots of the cheese department under each option and provide a recommendation to Cheesy Treats