QUESTION 1 (25 MARKS) Berjaya Berhad is a large manufacturing company that produces electronics products and this company is operated with multiple divisions. One of the main divisions in this company is the Audio Division that has the capacity to produce 25,000 units of speakers per annum. The speaker is being sold at RM60 per unit in intermediate market with a variable cost of RM42 and fixed costs of RM8 per unit. Currently, Audio Division is selling only 20,000 speakers to its outside customers. There is another division in the company that is the Hi-Fi Division that needs 5,000 units of this speakers per year for one of its products. There is one outside supplier willing to sell to Hi-Fi Division at a price of RM57 per unit. Berjaya Berhad evaluates the managers of both divisions based on their divisional profits. Required: a. From the view of Audio Division, calculate the lowest acceptable transfer price for speakers that can be sold to the Hi-Fi Division. (2 marks) b. From the view of Hi-Fi Division, compute the highest acceptable transfer price for speakers that can be acquired from the Audio Division. (2 marks) c. If both managers of Audio Division and Hi-Fi Division are free to negotiate and make decision on their own, will there be any transfer of 5,000 speakers to take place in the negotiation? Justify with numerical explanation for your answers. (3 marks) d. From the view of entire company of Berjaya, should the internal transfer of the speakers take place? Provide numerical explanation for your answers. (3 marks) e. Assume now that Audio Division is selling all the 25,000 speakers to outside customers. Calculate the acceptable range of transfer price for the speakers. (5 marks) f. Assume now that Audio Division is selling all the 25,000 speakers to outside customers. If both managers of Audio Division and Hi-Fi Division are free to negotiate and make decision on their own, will there be any transfer of 5,000 speakers to take place in the negotiation? Justify with numerical explanation for your answers. (5 marks) g. Assume now that Audio Division is selling all the 25,000 speakers to outside customers. From the view of entire company of Berjaya, should the internal transfer of the speakers take place? Explain your answers with numerical presentation.