Darselect Strawberry manufactures bottles in its glass Division A, which are then transferred to its packaging Division B. In the upcoming month, 320,000 bottles will be transferred to Division B from Division A, where they are filled and then sold at $6.80 per bottle. The bottles can be sold from Division A to other bottlers at $5.00 per bottle. The costs provided relate to total manufacturing budgeted costs for the 320,000 bottles. (Click the icon to view the costs data.) The operating income for Division A and Division B under the market price transfer-pricing method are provided in the accompanying tables. (Click the icon to view the division operating income.) The manager of Darselect Strawberry has just come back from a transfer-pricing conference where he learned about new methods. Costs data Division operating income 1. Calculate the operating income for Division A using 110% of manufacturing cost as the transfer price. 2. Calculate the operating income for Division A using 110% of market value cost as the transfer price. 3. If bonuses are calculated at 10% of operating income, what method will the manager of Division A prefer (market value or 110% of manufacturing cost)? 4. Comment on the 110% of manufacturing costs compared to the $5.00 market value transfer price. What impacts on behaviours or attitudes might occur within divisions if the company switches from market value to 110% of manufacturing cost