Question 4 (10 marks) A manufacturer operates with decentralised divisions. Division A used to purchase a component X from Division B. However, Division B recently increased the price of component X and is now selling each unit at $135; as a result, Division A currently purchases this component from external suppliers at $115 per unit. The following information is available: Required (a) Assume that there are no alternative uses for the facilities that are used to produce units of component X in Division B. (i) Determine with calculations whether the company as a whole will benefit if Division A purchases units of component X from external suppliers. Show full workings. (7 marks) (ii) What is the range of the transfer price that promotes goal congruence? (3 marks) Question 4 (10 marks) A manufacturer operates with decentralised divisions. Division A used to purchase a component X from Division B. However, Division B recently increased the price of component X and is now selling each unit at $135; as a result, Division A currently purchases this component from external suppliers at $115 per unit. The following information is available: Required (a) Assume that there are no alternative uses for the facilities that are used to produce units of component X in Division B. (i) Determine with calculations whether the company as a whole will benefit if Division A purchases units of component X from external suppliers. Show full workings. (7 marks) (ii) What is the range of the transfer price that promotes goal congruence