Grade Assist 22-20 Transfer pricing methods, goal congruence. British Columbia Lumber has a Raw Lumber Division and a Finished Lumber Division. The variable costs are: Raw Lumber Division: $100 per 100 board-feet of raw lumber Finished Lumber Division: $125 per 100 board-feet of finished lumber Assume that there is no board-feet loss in processing raw lumber into finished lumber. Raw lumber can be sold at $200 per 100 board-feet. Finished lumber can be sold at $275 per 100 board-feet. 1. Should British Columbia Lumber process raw lumber into its finished form? Show your calculations. 2. Assume that internal transfers are made at 110% of variable cost. Will each division maximize its divi sion operating-income contribution by adopting the action that is in the best interest of British Columbia Lumber as a whole? Explain. 3. Assume that internal transfers are made at market prices. Will each division maximize its division operating-income contribution by adopting the action that is in the best interest of British Columbia Lumber as a whole? Explain. bade an division onerating income. (CMA, adapted) Ajax Required