Part 2B Cooking Company has a decentralized organization with a divisional structure. Two of these divisions are the Appliance Division and the Housing Division. Each divisional manager is evaluated on the basis of ROI. The company uses the opportunity cost approach to make sure there is goal congruence. The Appliance Division produces a small automatic dishwasher the Housing Division can use in one of its models. Appliance division can produce up to 20,000 of these dishwashers per year. The variable costs of manufacturing the dishwashers are $98 The Housing Division inserts the dishwasher into the model house and then sells the house. Required: Answer the requirements under each of the required 3 areas. If you need to make a calculation you must provide cell references to earn credit. 1. Assume that all the dishwashers produced internally can be sold to external customers for $300 each The Housing Division wants to buy 4,000 dishwashers per year. What should be the transfer price? Why? Make sure you explain your answer. $24 avoidable distribution costs that will not be incurred if the company sells internally. 2. Refer to requirement #1 above. Assume there is A. Identify the minimum transfer price. B. Identify the maximum transfer price. C. Identify the actual price, assuming that negotiation splits the difference. 3. Assume that the Appliance Division is not producing at capacity and can meet the Housing Divisions request for dishwashers. 3,000 dishwashers from an outside supplier at $280 Each The Housing Division is currently buying Assume that any joint benefit will be split evenly between the two divisions. A. What is the expected transfer price based on this information in #3 ? B. How much with the profits of Appliance Division increase, assuming that it sells the dishwashers internally to the Housing Division? C. How much with the profits of Housing Division increase, assuming that it buys the dishwashers internally? D. How much will the profits of the firm increase under this arrangement in #3