Oriole Inc manufactures wood poles Orole Inc has two responsibility centres harvesting and sewing which are both evaluated as proht centres. The harvesting division does all the harvesting operations and transfers logs to the sawing division which converts the wood into poles for external dients. When operating at Full capacity, the saving division can convert 13,700 poles. Management considering replacing this type of wood pole with another type of wood pole that can be sold at a lower price and could allow the firm to operate at full capacity all the time The director of the saving division suggested that the maximum price the division can pay for each log from hervesting is 528.10. Following is the information that supports this suggestione $9100 Price per pole that the client would pay Direct labour costs $36.00 Variable overhead costs 4,00 Fixed overhead COSE 8.50 Raw material costs fother than los 240 50.90 Proht margin 1200 62.90 Total costs and profit margin Macamum price for a lop $28 10 The director of the harvestine division disagrees with selling the logs at a price of $28.10. The division is operating atful capacity and sells loes to ternal dients for $43.00 Moreover, the director says, "My direct labour costs are $2060, my variable overhead costs are $410, and my wed overhead costs are 59,80. I can't cut trees for $34 50 and sell them for $28.10 Assumine production is a full capacity, determine whether Oniole Inc. as a whole, would make a higher profit if logs were transferred to the swing division for $28.10 per lo Contribution margin from selling foes Contribution margin from selling poles For Oriole Inc. to transfer the top at 528 30 It would be eTextbook and Media Question Part Score Calculate the minimum and momum transfer prices that could be used and recommenderanferiod anto de places 15.25) who Profit margin 50.90 1200 62.90 Total costs and profit margin Maumum price for a long $28.10 The director of the harvesting division disaprees with selling the logs at a price of $28.40. The Vision hi operating at full capacity and vellaloes to external clients for S43.00. Moreover, the director says. "My direct labour costs are 520 80, miyvarlable overhead costs are 84 10, and my fored overhead costs are 59 80. I can't cut trees for $3450 and all them for $28.00 Asuming production is a full capacity determine whither Orlote 10.1 a whole, would make a higher profit #oys were transferred to the swing division for S2820 per lo Contribution warn from sellington Contribution margin from reling poles It would be for Orloletne trancher the top at 524 30 eTextbook and Media -16 Question Part Score Calculate the minimum and madium transfer prices that could be used and recommendan prograte transfer pound answers to 2 decimal places 1525) 5 Minimumranderprice $ Mmm transfer price $ Appropriate transfer price