QUESTION 5. A Ltd. produces P by its two divisions, X and Y. P is first processed in X and then in Y. X and Y are treated centres. The cost-volume-profit structure is as given below: Output Y Profit Units Costs Net Revenue $ $ $ 1,000 900 4,000 3,100 1,100 1,000 4,300 3,300 1,200 1,120 4,540 3,420 1,300 1,250 4,730 3,480 1,400 1,400 4,900 3,500 1,500 1,580 5,030 3,450 1,600 1,800 5,110 3,310 Note: Net revenue for Y means the sale proceeds minus costs incurred in Y. These costs do not include the price transferred material chargeable by X. Required: (a) Discuss the problem. (b) Fix and explain the optimum transfer price for A. Ltd