Superior Quality plc is a UK based company, which has a number of divisions working in different areas. Two of these companies are SQ7 and SQ8. SQ7 is involved in the production of products, P1 and P2. Pl is sold in the open market for $45 per unit. On the other hand, P2 is sold to SQ8. SQ8 sales goods to external customers and can obtain its part completed components (product P2) from either SQ7 or a supplier in the external market. SQ8 currently has the opportunity to purchase product P2 from an external supplier for $36 per unit. The capacity of division SQ7 is measured in terms of output units, regardless of any combination of P1 and P2 are being manufactured. The associated product costs are as follows: P1 S $ 252 P2 $ Variable costs per unit 30 32 Fixed overheads per unit 5 5 35 37 Total unit costs Required: (LO4. BT Level: Evaluate) a) Using the above information, advise on the determination of an appropriate transfer price for the sale of product P2 from SQ7 to SQ8 when SQ7 has spare capacity and limited external demand for product P1. b) Explain the reason for this, in no more than 4 lines. Write any 2 objectives of a transfer pricing system (7 Marks) (3 Marks) (3 Marks) is