Kindly answer items 4-7!! please show working notes.

EXERCISE 14. Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments. Alamosa Division produces a 2.6 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is P21. Cost information for the blade is: Variable product cost, P9.70; and Fixed cost, P5.50. Tavaris needs 15,000 units of the 2.6 cm blade per year. Alamosa Division is at full capacity (90,000 units of the blade. 1. (a) If Carreker, Inc., has a transfer pricing policy that requires transfer at market price, what would the transfer price be? (b) Do you suppose that Alamosa and Tavaris divisions would choose to transfer at that price? 2. Refer to original data. Suppose that Carreker, Inc., allows negotiated transfer pricing and that Alamosa Division can avoid P1.75 of selling and distribution expense by selling to Tavaris Division. (a) Which division sets the minimum transfer price, and what is it? (b) Which division sets the maximum transfer price, and what is it? (C) Do you suppose that Alamosa and Tavaris divisions would choose to transfer somewhere in the bargaining range? 3. Refer to original data. Suppose that Alamosa Division plans to produce an only 65,000 units of the 2.6 cm blade next year. (a) Which division sets the minimum transfer price, and what is it? (b) Which division sets the maximum transfer price, and what is it? (C) Do you suppose that Alamosa and Tavaris divisions would choose to transfer somewhere in the bargaining range? 4. Refer to original data. (a) If Carreker, Inc., has a transfer pricing policy that requires transfer at full product cost, what would the transfer price be? (b) Do you suppose that Alamosa and Tavaris divisions would choose to transfer at that price? 5. Refer to original data. (a) If Carreker, Inc., has a transfer pricing policy that requires transfer at full cost plus 25 percent, what would the transfer price be?' (b) Do you suppose that Alamosa and Tavaris divisions would choose to transfer at that price? 6. Refer to original data. (a) If Carreker, Inc., has a transfer pricing policy that requires transfer at variable product cost plus a fixed fee of P2.00 per unit, what would the transfer price be? (b) Do you suppose that Alamosa and Tavaris divisions would choose to transfer at that price? 7. Refer to original data. Suppose that Alamosa Division plans to produce and sell only 65,000 units of the 2.6 cm blade next year. The Carreker, Inc., policy is that all transfers be at full cost. (a) Which division sets the minimum transfer price, and what is it? (b) Which division sets the maximum transfer price, and what is it? (c) Do you suppose that Alamosa and Tavaris divisions would choose to transfer