> OY 8 1 CERERE GAVE YOUR WORK ATO + + 57 Question 2 - 10 marks SN 302 Titanium Castings Lid hasa Castings Division that does casting work of vario type. The company's O Machine Products Division has asked the Castings Division to provide it with 22.000 speciales each year on a continuing basis. The special castings would require 510 per unit in variable production costs. The Machine 62 Products Division has a hid from antide supplier of 50 per unit for the castings 64 In order to have time and space to produce the special casting, the Castings Division would have to cut back s production of another casting the RX100, which it presently is producing The RX100 sells for $4 pornit, De and requires 514 per unit in variable production costs. Having and shipping costs of the RX100 ke 33 per unit. 67 Boxing and shipping costs for the new special casting would be Si per unit. The company OK is now producing and selling 100,000 units of the RX100 casting each year Production and sales of this casting 19 would drop by 22% if the new casting is produced. 70 71 Required: 72 72 ) Calculate the transfer price of the Castings Division if the transfer of 22,000 special casting Show anylall workings in here: was to take place between the two divisions (mark) 75 76 Transfer price of Castings Division 78 b)What is the transfer price of the Machine Products Divison (1 mark) 79 80 Transfer price of Machine Products Division 81 SECTION 4 SECTION 5 SECTION FORMULASHI 4 SECTION 2 SECTION 3 Instructions CIKK HERE TO SAVE YOUR WORK A10 D 1 Required: Show anyfall workings in here: 23 ) Calculate the transfer price of the Castings Division if the transfer of 22,000 special casting 74 was to take place between the two divisions. (5 marks) 75 76 Transfer price of Castings Division 78 b)What is the transfer price of the Machine Products Divison? (1 mark) 79 80 Transfer price of Machine Products Division 81 22 c) What is the transfer price range between the two divisid 83 84 85 36 d) Do you think this transfer shoul take place? (1 mark) 87 88 39e)Briefly explain why you said yes or no in (d) above. (2 marks) 20 FORMULA SHI SECTION 6 SECTION 4 SECTIONS SECTION 2 SECTION 3 Instructions