Need help with part C. What unit cost would you recommend for a sale of units from the South Division to the North Division?

T-Comm makes a variety of products. It is organized in two divisions, North and South. The managers for each division are paid, in part, based on the financial performance of their divisions. The South Division normalysels to outside customers but, on occasion, also sells to the North Division. When it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair return to the selling division South received an order from North for 300 units. South's planned output for the year had been 1.200 units before North's order. South's capacity is 1,500 units per year. The costs for producing those 1,200 units follow Materials Direct labor Other costs varying with output Foxed costs (do not vary with output) Total costs Total Per Unit $ 115 200 $ 96 51,600 43 37 200 528 000 440 S 732,000 $ 610 31 Required: Options: A. Use the full per unit cost for normal production of 1,200 units B. Use only differential costs as the cost basis. C. Use differential costs plus a share of fixed costs, based on actual production volume (with North's order of 1,500 units. a. If you are the manager of the South Division, what unit cost would you ask the North Division to pay? (Do not round intermediate calculations, Round your final answer to 2 decimal places.) Per unit cost (plus 20%) $ 732 00 b. If you are the manager of the North Division, what unit cost would you argue you should pay? (Do not found intermediate calculations. Round your final answer to 2 decimal places.) Per unit cost (phus 2005) S 204 00 C. Wmat unit cost would you recommend for a sale of units from the south Division to the North Division? Do not found intermediate calculation Round your final answer to decimal places