(sand-gravel) on construction sites to make roads. This Asphalt Division prefers to purchase raw asphalt base from Murad's Division but can buy| their raw materials form a different supplier for $1.15 per liter. They could be persuaded to offer Murad the same price but will not pay more. Similarly, Murad prefers to sell to their in-house Asphalt Division, but can sell to international asphalt makers on the open market. The conversion cost of turning asphalt base into binder is $0.15 per liter and asphalt binder is sold by the barrel for $320 per barrel. Question 3. What is the total cost to produce a liter of asphalt base assuming $75 per barrel and? What would be the contribution per liter for Murad's Division and the Asphalt Division respectively if Murad set the transfer price at cost? What would be the contribution per liter for Murad's Division and the Asphalt Division if they set the price at $1.15 per liter