Riches Nigeria Limited has two divisions, A and B. Division A specialize in the manufacture of a special part of a product while Division B is responsible for the completion of the production and sale of the final product.. Division A not only produced but also sells some of its components to third parties though it remains a major supplier to Division B. Division B can also buy from other suppliers the same part to augment supply gap from Division A. The two divisions are both profit centres. The following information are for the month of November: Production in units Division B Division A 20,000 Sales to Division B (units) 18,000 Sales to third parties (units) 2,000 23,000 Purchases from outside suppliers (units) 5,000 Transfers from Division A (units) 18,000 Production cost per unit- #200 Transfer from Division A- #220 Additional cost of production- #30 Market value of sales to third parties- #240 #300 Cost of purchase from outside suppliers. #225 Investment in the divisions #3,000,000 #3,200,000 The company's cost of capital is 10%. You are required to: (a) Determine the profit made by each division and the company for the month. (7 % marks) (b) Determine the Returns on Investment (ROI) and the Residual Income (RI) of the divisions and the company and state the most preferred method of appraising the two divisions (5 marks) (c) State the advantages and disadvantages of the most preferred parameters for appraising divisional performance (5 marks) Total 17% marks