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Question6 Advanced Manufacturing Inc. (AMI) produces electronic components in three divisions: industrial, commercial, and consumer products. The commercial products divisiona purchases 10,000 units of part 23-6711, which the industrial division produces for use nnually in manufacturing one of its own products. The commercial division is growing rapidly due to wants to increase its purchases of part 23-6711 to 15,000 units per year. The problem rapid growth in its markets. The commercial division is expanding its production and now that the industrial division is at full capacity. No new investment in the industrial division has been made for some years because top management sees little future growth in its products, so its capacity is unlikely to increase soon. The commercial division can buy part 23-6711 from HighTech Inc. or from Britton Electric, a customer of the industrial division, now purchasing 650 units of part 88-461. The industrial division's sales to Britton would not be affected by the commercial division's decision about part 23-6711 Industrial division Data on part 23-6711 Price to commercial division Variable manufacturing costs Price to outside buyers $ 185 155 205 Data on part 88-461 Variable manufacturing costs Sales price 65 95 Other suppliers of part 23-6711 HighTech Inc., price Britton 200 210 REQUIRED: A. What is the proper decision regarding where the commercial division should purchase (10 marks) Assume that the industrial division's sales to Britton would be cancelled if the commercial division does not buy from Britton. What would be the unit cost to AMI in the addition?a) 5,000 parts and what is the correct transfer price? B. this case, and would the desired transfer price change? (6 marks) C. What are the str?tegic implications of your answer to requirement A? How can AMI become more competitive in one or more of its divisions? (4 marks) (Total: 20 marks)