PROBLEM 1 Hitachi Philippines has two divisions, A and B. division a makes a component for air conditioning units which can only sell to Division B. It has no other other outlet for sales. Current information relating to Division A is as follows: Marginal cost per unit P100 Transfer price of the component 165 Specific fixed costs of division a per year 10,000 Total production and sales component each year 2,200 units carrier company has offered to sell the component to division b for P140 per unit. if division b accepts carrier company's offer, what will be the impact on profits per year for the group as a whole? PROBLEM 2 ABC Corporation makes products Alpha and Beta. Both products makes use of the same equipment. The following were provided to you with regard to these products in preparation for its budget for next year. PESO PER UNIT BETA ALPHA DATA AT 10,000 UNITS SELING PRICE 100 AT 12,500 UNITS 100 AT 5,000 UNITS 250 LESS: COSTS 70 62 230 PROFIT: 30 38 20 OTHER information are as follows: ALPHA EXPECTED MAKET DEMAND 10,000 UNITS NEXT YEAR REQUIRED MACHINE HOURS PER UNIT 2 TOTAL AVAILABLE MACHINE HOURS BETA 6,000 UNIT 3 20,000 AT 8,00 UNITS 250 170 80 A. What is the contribution margin of Alpha if ABC was able to optimize the use of the machine hours? B. How many units of Beta should be produced to maximize profits?