Kanorer Enterprises Ltd has two divisions Kapode and Kayole Mugaa division manufactures an intermediate product for which there is no external market. Kayobe division incorporates the intermediate product into a final product, which it sells. One unit of the intermediate product is used in the production of the final product. The expected units of the final product with Kapode division estimates it can sell at various selling prices are as follows: The variable and fixed costs of each division are as follows: The transfer price is Sh. 35 for the intermediate product, and is determined on a full cost -plus basis. Required: a) Profit statements for each division and the company as a whole for the various selling prices. (12 Marks) b) Which selling prices maximize the profits of Kayole division and the company as a whole? Comment on why the selling price (which is selected by the company) is not selected by Kayole division