LTK company's Electronic Division produces compact speakers used by manufacturers of various audio products. Sales and cost data for the Electronic Division is as follows: Selling price per unit of the speaker in the market Variable cost per unit Fixed cost per unit (based on capacity) Capacity in units RM 60.00 42.00 8.00 25,000 LTK company has a Computer Division that manufactures laptops that could use the speaker in its latest model. The Computer Division requires 5,000 units per year. It has received a quotation from a company in China for RM 57.00 per unit. Each Division manager has full authority over all decisions involving the sale of that division's output either to outside customers or other divisions of the company. Required: 1. Assume that the Electronic Division is only selling 20,000 units of the speaker to outside customers, what is the minimum transfer price for the speaker to be sold to the Computer Division? Explain your answer. (2 marks) 2. What is the maximum transfer price acceptable to the manager of the Computer Division? Explain your answer. (2 marks) 3. From the standpoint of the company, should the transfer take place? Show you computations. (2 marks) 4. Assume that the Electronic Division is selling all 25,000 units it produces to outside customers. What is the minimum transfer price for the speaker to be sold to the Computer Division? Explain your answer. (3 marks) 5. Assume that Management of the company insist that the Electronic Division transfers the 5,000 units of speakers to the Computer Division as per the minimum transfer price calculated in 4 above. From the standpoint of the company, should the transfer take place? Explain your answer.