Etueaon 2: Nova Producln' Canadian operatione are organized into two divisions: lat-Te5t and East 1.-".-'e5t Diane-ton sells a component that could he used by East Diui5ion in maldng one of the company 5 principal ptnducte. East Dianeion has ohtained three price quotations from external Suppers for me component: $154 $133, and 51.43. Examination of Tn'n-'est Damion 5 aocounng records perm-nine to the production of The component reveals the fotlowing cooln: direct roaten'als, $55, direct labour: 54-4, 1=5a.1:iah1e overhead, $15, and xed overhead, 525. Requieed: A5 the chief accountant. you have been directed h? the CEO to detualrnine the following: 1. Tit-"hat mines [or prots.) would he auailahle to Nova if East Division bought the cornpon-L internally ramer than externally? 2. What 5muld the tran5fer price he if the two dieasions agreed to spht the total company 5a5ing5 E'VEElJ." hetween mem? 3. A55uane dual transfer pricing E u5ed, set the maximum realistic price for 1.-".-Te5t Uhdeion andthe minimum reaIiEdc price forEaet Division