Motor Supply Ltd (MSL) has two manufacturing divisions: Perth division and Brisbane division. The Perth division produces motors which are sold to the Brisbane division and to outside customers. The Brisbane division can purchase its requirement from an outside supplier. Assume the following information relative to the two divisions: Case 1 2 3 4 Perth Division Capacity in units 90,000 90,000 90,000 20,000 units sold to outside customers 90,000 70,000 $7,000 80,000 Selling price to outside customers (per $35 $35 $ 35 unit) Variable manufacturing costs per unit $20 $20 $25 $25 Variable selling costs to outside customers (per unit) $2 S2 $2 Fixed costs (per unit) $6 SG $6 Brisbane division Number of units needed 8000 6000 5000 5000 Purchase price now being paid to an outside supplier per unit iper motor) $34 $34 $30 Further processing variable cost per $25 $25 $25 $25 unit Further processing fixed cost per unit $5 $5 195 Final product selling price per unit $90 $90 $90 $90 Required: Answer each of the following independent questions. (Total Marks: 15) (1) Refer to case 1 shown in the table above. Explain the likely reaction of divisional managers towards the transfer. Show the computation of both maximum and minimum transfer prices. (2 marks) (ii) Refer to case 2 shown in the table above. Explain the likely reaction of divisional managers towards the transfer Show the computation of both maximum and minimum transfer prices. (2 marks) (II) Refer to case 3 shown in the table above. Explain the likely reaction of divisional managers towards the transfer. Show the computation of both maximum and minimum transfer prices. (2.5 marks) (iv)Refer to case 4 shown in the table above. Explain the likely reaction of divisional managers towards the transfer. Show the computation of both maximum and minimum transfer prices. (2.5 marks) (v) Refer to case 2 shown in the table above. If the agreed transfer price is $25 calculate the total incremental profit resulting from the internal transfer for each division. Show the computation. (3 marks) (vi)Refer to case 3 shown in the table above. Recommend whether the transfer is in the best interest Motor Supply Ltd. Show the computation