Juara Machinery Berhad has two divisions namely West Division and East Division. The divisions are treated as investment centres and end of financial year they will prepare an operating statement to be submitted to Juara Machinery Berhad. Operating statements for these two divisions are shown below: West Division (RM) East Division (RM) 1,500,000 Sales revenue 600,000 450,000 320,000 Less: Variable costs 1,050,000 280,000 Contribution margin 100,000 30,000 Less: Fixed cost 330,000 150,000 Less: Apportioned central cost 620,000 100,000 Net income before tax 880,000 Total divisional net assets 9,750,000 Juara Machinery currently has a target return on capital of 10% per year. However, Juara Machinery believes its cost of capital is likely to rise and is considering increasing the target return on capital Required: (Show all calculations) If Supply Division has an external demand of 15,000 units, what is the minimum transfer price that Supply Division can offer to Assembly Division? Explain the rationale for your answer (3 marks) (b) if Supply Division has an external demand of 40,000 units, what is the minimum transfer price that Supply Division can offer to Assembly Division? Should Assembly Division accept the price offered by Supply Division? Explain the rationale for your answer. (3 marks) (c) If Supply Division has an external demand of 20,000 units, what is the lowest transfer price acceptable by the Assembly Division? Explain the rationale for your answer. (4 marks)