Required: 1. Calculate the minimum and maximum transfer prices. {4 marks} 2. Assume that the transfer price agreed on between the two managers is halfway,r between the minimum and maximum transfer prices. Calculate this transfer price. What markup over full cost is implied by this transfer price? {4 marks} 3. Refer to requirement 2. Assume that the following year the outside price of suhwoofers increases to $32. What is the new full costplus transfer price? {4 marks} 4. Assume that two years after the initial agreement, the market for suhwoofershas softened considerably; causing excess capacity for the Auxiliary,r Components Divisions. Would you exp ect a renegotiation of the full cost-pluss pricing arrangement for the coming year? Explain. (5 marks} (Total 18 marks}