Please answer the following:

D Question 4 33 pts Gemco Itd manufactures low processing power mini computers. It has two divisions. The Chip division and Assembly division. Chip division makes processing chips (ChipT) and transfers them to the Assembly division. The Assembly division installs these chips on the motherboard and sells the assembled laptops to customers at a price of E250 per unit. The Chip division has yearly manufacturing capacity of 50,000 processing chips. It is currently required by Gemco to transfer its total yearly output of ChipT to the Assembly division. Many other companies also manufacture the chips of similar power and unlimited quantity of these chips can be sold and purchased in the market at E125. Should. Chip division decide to sell the ChipT to the outside market, it would have to incur variable marketing and distribution cost of f10 per unit. Similarly, if the Assembly division decides to purchase ChipT from the outside market, it would have to incur variable purchasing cost of f5 per unit. The following table gives the manufacturing costs per unit in the Chip and Assembly divisions for the year 2019: Chip division Assembly division Direct materials $35 E40 Direct manufacturing costs $20 E25 Manufacturing overhead f15 costs Required a. Calculating the operating profits for the Chip and Assembly divisions for the 50,000 units of ChipT transferred under each of the following transfer-pricing methods Market price 125% of full manufacturing costs (20 marks) b. Discuss why it would be appropriate that ChipT is transferred by Chip division based on the market prices. (4 marks) c. Suppose that the division heads of Chip and Assembly division are to decide the transfer prices in a meeting. Determine the minimum transfer price that would be acceptable for the Chip department to transfer ChipT to the Assembly department. Also determine the maximium price that Assembly department would be willing to pay to purchase ChipT from the Chip division. Please explain your answer. (9 marks)