Collyer Products Company has two divisions - Valve and Pump. The Valve Division manufactures a standard valve which can be sold either to the Pump Division or to outside customers. The Pump Division can use this valve in one of its pumps. The costs and sales data of the standard valve follow: Selling price to outside customer $48 per valve Direct material $8 per valve Direct labour $16 per valve Variable overhead cost $4 per valve Fixed overhead cost $14 per valve Total production capacity 100 000 valves per year Current sales to outside customers 80 000 valves per year Transfers to Pump Division 15 000 vales per year Required: answer each of the following independent questions. (1) Determine the minimum transfer price using the general rule. Show your calculations. (2 marks) (ii) Determine the minimum transfer price if the Valve Division sells all valves (total production capacity) to outside customers. Show your calculations. (2 marks)(lil) Determine the minimum transfer price if the Pump Division needs 25 000 valves from its Valve Division. Show your calculations. (2 marks) (lv) Describe the likely reaction of the Pump Division's manager if the valve is available from an external suppler for $45 and Valve Division sells all valves (total production capacity) to outside customers. Show the computation of both maximum and minimum transfer prices. Show your calculations. (3 marks) (v) Discuss how divisional managers can arrive at a possible transfer price, if Pump Division incurs an extra cost of $22 (in addition to transfer price) in making pumps and all pumps are sold for $60 each in the market. Show the computation of both maximum and minimum transfer prices. Show your calculations