PT Hygienes is a manufacturer of skin care products, which has two The main divisions are the Chemical Division (CD) and the Personal Products Division (PPD). CD besides selling alcohol to PPD as raw material for making hand sanitizers, also selling to companies other. Currently, CD is operating at 80% capacity.

The following is CD's financial data:

Sales to external (liters) 3,600

Sales to DPP (liters) 2,400

Selling price of alcohol (market price) IDR 23,000.00/liter

Variable cost IDR 12,700,000/liter

Total fixed cost (for 100% capacity) IDR 21,800,000.00

In addition to the costs above, CD incurs other variable costs in the form of advertising costs for

sales of alcohol to external, which is Rp. 600.00/liter.

The following is PPD's financial data:

Variable cost IDR 3,200.00/bottle

Total fixed cost (for 100% capacity) IDR 37,600,000.00

Sales (bottle) 13,000

Selling price IDR 11,000.00/bottle

Total investment IDR 157,800,000.00

Set yield 11%

Because the demand for hand sanitizers is increasing during this pandemic, PPD asks CD to increase the supply of alcohol by 1,000 liters but at a price IDR 18,500, 00/liter.

Requested:

1) What is the minimum transfer price that should be charged by CD to PPD?

2) Does CD have to accept a request for an additional 1,000 liters of alcohol at a price IDR 19.000,00/liter? Explain why!

3) If CD has been operating at full capacity (100%), what is the demand in point b is it acceptable (at the expense of external customers)? Is that thing will provide additional profit for CD? Give the calculations and analysis! (8)

4) Using the data above, calculate the Residual Income for PPD! (6)

5) In your opinion, what are the advantages of EVA over Residual Income? Explain! (4)