If possible, kindly assist to provide feedback on the working and notes required.

The University of Davenport consists of six mculties and an administration unit. Under the university's management philosophy. each faculty is treated. as far as is reasonable. as an independent entity. Each faculty is responsible for its own budget and nancial decision making. A new course in the Faculty of Geography {FE-i) requires some input from a member of staff of the Faculty of Modern Languages (Frau. The two faculties are in dispute about the 'price' that FG should pay FML for each host of the staff member's time. FML argues that the hourly rate should be E1 T5. This is based on the FML budget for this year. which in broad outline is as follows: coco Academic staff salaries {25 staff} 1.062 Faculty overt-reacts [ready all xed costs) 1% Each academic is expected to teach on average for 15 hours a week for 33 weeks a year. FML wishes to charge FG an hourly rate which will cover the appropriate proportion of the member of staff's salary plus a 'fair' share of the overheads plus 1D per cent for a small surplus. F3 is refusing to pay this rate. One of FG's arguments Is that it should not have to bear any other cost than the appropriate share of the salary. FG also argues that it could find a lecturer who works at the nearby University of Tavlstioclt and is prepared to do the work for 50 an hou'. as an additional. spare-time activity. FML argues that it has deliberately staffed itself at a level which will enable it to cover FG's requirements and that the price must therefore cover the costs. The miversity's Vice-Chancellor {its most senior manager} has been asked to resolve the dispute. You are the miverslly's nance manager. Required: Make notes in preparation for a meeting with the lii'icet'ihancellor. where you will discuss the problem with her. The l..~"rce-Cihancellor is a historian by background and is not famil- iar with nancial matters. Your notes wl therefore need to be expressed in language that an intelligent layperson can understand. Your notes should deal both with the obiectives of effective transfer prices and with the specics of this case. You should raise any issues that you think might be relevant