no hand-writing show me the calculation please?
Truffle Time produces hot cocoa mix. The company has two divisions, each operating as a profit center. The transportation division purchases raw cocoa in the lvory Coast and transports it to the mixing division in Atlanta, Georgia. The mixing division processes the raw cocoa into the cocoa mox. It takes two pounds of raw cocoa to yield one pound of cocoa mix. Variable and fixed costs per pound of raw cocoa in the transportation division and variable and fixed costs per pound of cocoa mix in the mixing division area as follows: (Click the icon to view the data.) The market price for a pound of raw cocoa supplied to the mixing division in Atlanta is $21. Truffle Time can sell each pound of hot cocoa mix for $60. Read the reguirements. Requirement 1. What are the minimum and maximum transfer prices per pound of raw cocoa transported to the mbing division at which both divisions are willing to transact with each other? Assume the transportation division has unused capacity to transport raw cocoa to the mixing division. Minimum transfer price = Maximum transfer price =$21 Requirement 2. Refer to your answer in requirement 1. The management of Truffle Time is trying to decide on the Data table g as a profit center. The a mixing division in Atlanta, o pounds of raw cocoa to yield iportation division and variable 5 \$21. Truffle Time can sell each aw cocoa transported to the e the transportation division Time is trying to decide on the . 1. What are the minimum and maximum transfer prices per pound of raw cocoa transported to the mixing division at which both divisions are willing to transact with each other? Assume the transportation division has unused capacity to transport raw cocoa to the mixing division. 2. Refer to your answer in requirement 1. The management of Truffle Time is trying to decide on the specific transfer price within the bounds identified in requirement 1 . Jeb Lindsay. Truffle Time's CEO, is suggesting to split the difference between the maximum and the minimum transfer price evenly. What is the transfer price under this scenario? What is the contribution margin per pound of raw cocoa for the transportation division? What is the contribution margin per pound of cocoa mix for the mixing division? 3. LouAnn Bree. Truffle Time's CFO, disagrees with Jeb Lindsay's suggestion to split the difierence evenly. She argues that the difference between the maximum and minimum transfer price should be prorated based on the value of the work contributed by each of the divisions to the final product. this scenario? What is the contribution margin per pound of raw cocoa for the transportation division? What is the contribution margin per pound of cocoa mix for the mixing division? 3. LouAnn Bree, Truffle Time's CFO, disagrees with Jeb Lindsay's suggestion to split the difference evenly. She argues that the difference between the maximum and minimum transfer price should be prorated based on the value of the work contributed by each of the divisions to the final product. a. What is the value of the work contributed by each of the divisions towards a pound of cocoa mix? Ignore fixed costs. b. What is the transfer price if the difference between the maximum and the minimum transfer price (identified in requirement 1 ) is prorated based on the relative value of the work contributed by each of the divisions (identified in requirement 3a )? What is the contribution margin per pound of raw cocoa for the transportation division? What is the contribution margin per pound of cocoa mix for the mixing division? c. Which transfer price, the one identified in requirement 2 or the one identified in requirement 3b, do you think Truffle Time should use
