Page 9 of 10 MAC3761 Test 2/June 2023 CONFIDENTIAL [TURN OVER] QUESTION 1 (continued) REQUIRED For each sub-question below, remember to: Ignore taxation and the time value of money; Clearly show all your calculations in detail; and Where necessary, indicate irrelevant amounts/adjustments with a R0 (nil-value). (a) Identify three ethical concerns that are evident from the scenario and, for each of these concerns, explain why it is or may be concerning from an ethical perspective. (6) (b) Discuss two possible situations in which it will be acceptable for the Intshe Head Office to interfere in the setting of transfer prices despite the price setting in the company being highly decentralised. (4) (c) By using the information provided in the scenario, discuss three points to determine whether Intshe (Pty) Ltd operates a divisionalised organisational structure. (6) In terms of the Farming Division (d) Determine the total amount of FY2024 budgeted joint costs that should be allocated to meat as a joint product of the farm. (6) (e) Discuss six factors that the Farming Division management have to consider in deciding whether to relocate the operations of the farm in the 2025 financial year. (6) In terms of the Leather Division (f) Calculate the budgeted controllable profit and the budgeted controllable investment that will be used in the measurement of performance of the divisional management for the 2023 financial year. (7) In terms of the Butchery Division (g) Determine the budgeted minimum transfer price per kilogram at which the Butchery Division would be willing to transfer the total quantity of required ostrich mince to the Ready-made Meals Division for the 2024 financial year. Note: Calculate a single minimum transfer price per unit for the whole internal transfer. (7) In terms of the Ready-made Meals Division (h) Prepare the quantity statement for the month ended 31 July 2023. Note: Do not convert from gram to kilogram in your workings. (7) (i) (i) Indicate whether you agree with the view of the finance manager of this division regarding his comment on target costing and provide a reason for your answer. (ii) Mention two internal and/or external factors that the marketing manager may have had in mind when she referred to establishing a selling price for the proposed new product. (2) (2) (j) List three potential non-financial performance measures of quality and/or efficiency that can be used in measuring and managing the performance of the division in terms of the meal production process and/or its products (the ready-made meals). (3) (k) (i) Determine if the return on investment target for the 2023 financial year has been met by the division. Note: Show your workings. (ii) Calculate the residual income or residual loss (as applicable) for the division fo