Please help me in this question provide simple and easy understanding answers for the theory

Question 2 Amber Company has three divisions which operate as autonomous profit centres. The Bubbles Division manufactures premium soap which it sells to external customers for $4 per cake. Its main raw materials are caustic soda, which it purchases from the Chemo Division, and glycerine, which it purchases from the Oils Division. no Division manufactures a high grade caustic soda for internal transfer, and also sells this to external customers at a rate of S4 per kg. There is an established market for caustic soda, and the Chemo Division can selfl all the caustrc soda that it can manufacture. The Oils Division also operates in a well- developed competitive market. It currently sells its gly for S6 per litre. However, the external market is limited, so the Oils Division operates with excess capacity. Currently, about 70 percent of the output of Glycerine is sold to the Bubbles Division. The following costs relate to the two products that are transferred: Chemo Division Caustic Soda Direct material Direct labour Variable overhead Fixed overhead Total Cost Oils Division Glycerine Per litre $ 2.50 0.40 0.60 1.50 $5.00 Per kg $1.00 0.50 0.40 1.40 $3.30 Required: a) State the general transfer pricing rule, and use it to calculate transfer prices for the Chemo Division and the Oils Division. (6 marks) b) Bubbles Division has just discovered that it can purchase glycerine from an overseas source at $3.90 per lit and has told the Oils Division that unless it lowers its transfer price, it will no longer purchase its product. The manager of the Oils Division has said that he cannot supply glycerine at this price, as he needs to cover his overheads and meet his profit target Discuss the short-term and long-term issues that need to be considered by these two divisions and by the company as a whole in resolving this issue. (10 marks) e) "There is no need to use transfer pricing systems in divisionalised companies, as these only result in internal transactions which cancel each other out." Do you agree with this statement? Provide arguments to explain your answer. (4 marks) 20 marks) (Total marks