Q3: Al-Khour group owns two subsidiaries North and South. North produces and sells Woods; the cost structure is as the following: 6 Points Variable Cost 200$ per ton, Fixed annual cost is 2 million. The North can sell 15000 tons to external market at 425$ per ton. The South purchases 3000 units from the market for 400$ and then sell it for 600$. Requirements: 1. If the North is sold 13000 tons to the market what is the range of transfer price with the South. 2 points 2. Assume that the North is working at capacity, what is their maximum loss if the transfer occurs. 2 Points 3. If the North has only 600 tons idle capacity what is the range of transfer price. 2 Points