Johnston Chemical Company manufactures a wide variety of industrial chemicals and adhesives. It purchases much of its raw material in bulk from other chemical companies. One chemical, T-Bar, is prepared in one of Johnstons own plants. T-Bar is shipped to other Johnston plants at a specified internal price. The Johnston adhesive plant requires 10,000 barrels of T-Bar per month and can purchase it from an outside supplier for $150 per barrel. Johnstons T-Bar unit has a capacity of 20,000 barrels per month and is presently selling that amount to outside buyers at $165 per barrel. The difference between the T-Bar units price of $165 and the outside firms T-Bar price of $150 is due to short-term pricing strategy only; the materials are equivalent in quality and functionality. The T-Bar units selling cost is $5 per barrel, and its variable cost of manufacturing is $90 per barrel.Required: (a) From the perspective of Johnson as a whole, should the Mixing division purchase T-Bar from the T-Bar division within Johnson or from the external supplier? Use calculations to support your answer. (5 marks) (b) If internal transfer of T-Bar within Johnson was demanded by Johnson management for competitive reasons, what would the ideal transfer price be considering all of the different transfer-pricing options available to Johnson? Explain your answer with calculations. (10 marks) (c) How would your answer to (b) change, if at all, if the T-Baar division had capacity to make 30,000 barrels of T-Bar per month and external customers demand was for 20,000 barrels? (5 marks)