Strawberries Juices has two divisions, a Juice Division which manufactures juice by pressing raw fruits into juice, and a Fruit Division which grows raw fruits. The Juice Division requires the Fruit Division to supply 8,000 kg of blueberries to press into blueberries juice per year. The Juice Division can buy all the blueberries it requires from an outside supplier at $13.8 per kg. The Fruit Division has the capacity to grow 20,000 kg of blueberries per year. 18,000 kg of these blueberries can be sold to retail customers at a price of $16 per kg. The Fruit Division can grow blueberries at a cost of $4.8 per kg, plus packing and storage costs of $0.2 per kg. If the Fruit Division would sell its blueberries to the Juice Division, it would incur no packing and storage costs

a)If there is an acceptable range for the transfer price between the two divisions and there is disagreement over the transfer price, discuss the possible reasons for the disagreement and the appropriate actions to be taken by the company to solve the disagreement between the two divisions.