EXERCISE 3: ADAPTED TEST 1-2016 A company has two divisions' located one in Windhoek and the other in Swakopmund. Windhoek division manufactures a component, which is transferred to Swakopmund, where it is used to manufacture a final Product. Swakopmund division sells the final product on an imperfect market. Windhoek division can produce a maximum of 60000 components per month. Windhoek division incurs variable costs of N$ 10 per component. Swakopmund division incurs variable costs of N$ 35 per unit of final product. The fixed costs of N$100 000 and N$200 00 per month that are unavoidable in the short term are incurred by two divisions respectively. Windhoek division can also sell the component on an imperfect intermediate market. The sales and corresponding external market prices for two divisions are as follows: Windhoek Division Swakopmund Division Selling price (N$) Quantity sold (#)per Selling price (N$) Quantity sold (#)per month month 40 20000 65 20000 35 40000 60 40000 25 60000 52 60000 Required: Suggest an appropriate range of transfer prices that is goal congruent. Show all calculations. (25 marks)