Hi, hope you can help me....

(b) The Southern Division (SD) of BIG group of companies manufactures component Zip that is used by the Northern Division (ND). The manufacturing costs per unit of Zip are as follows: RM Direct material 12 Direct labor 6 Variable production overhead Fixed production overhead Other costs incurred by SD are the fixed selling, administration and distribution costs amounting to RM300,000 per annum and variable sales overhead is RM2 per unit. The selling price per unit of Zip is between RM40 and RM44 in the external market and currently, SD is selling Zip to their external customers at a price of RM42 per unit. The SD division has an annual production capacity of 300,000 units but only 200,000 units are being produced and sold due to economic downtum. The variable sales overheads are avoidable if the component Zip is sold internally. The ND division has been purchasing the Zip component from their external supplier for RM40 per unit and for the coming year, ND expects to use 100,000 units of Zip. The production manager ofND division has offered to buy 100,000 units of Zip from SD for RM25 per unit. Required: i. Determine the minimum transfer price that SD division could accept and explain why SD would accept it. (3 marks) ii. Determine the maximum transfer price that the production manager of ND division would be willing to pay and why? (3 marle) iii. Should an internal transfer take place? Evaluate why or why not? If you were the manager of SD division, would you sell 100,000 units of Zip for RM25 each? Critically evaluate your answer. (5 marla)