Question 4 (20 marks) Gamma Company has two divisions, Alpha and Beta. The Alpha Division makes and sells a product with the following information on price, costs, and capacity for the next year: $25 $15 Selling price per unit: Variable cost per unit Annual fixed cost: Maximum capacity: $230,000 75,000 units In this year just ended, the Beta Division purchased 20,000 units of this same product from outside supplier at $22 per unit. The Beta Division is considering buying 20,000 units of product from the Alpha Division next year. The outside supplier said that they would keep price at $22 for the next year. 04 a Without referring to any figures, explain the general rule for determination of: the minimum transfer price from the selling division's perspective, and (ii) the maximum transfer price from the buying division's perspective (4 marks) Save 04-b By applying the general rule in (a) above, determine the feasible range of transfer prices within which both the divisions' profits would increase as a result of agreeing to the transfer of 20,000 units per year from Alpha Division to Beta Division next year it: (1) Alpha Division can sell only 57,000 units to external customers. (ii) Alpha Division can sell only 75,000 units to external customers. (10 marks) 04 c Based on your calculations in (b) above, what would be the impact on the overall profit of Gamma Company? Explain the impacts for (b)0) and (b)(m) in separate paragraphs. (6 marks)