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The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions: the Perfume Division and the Bottle Division. The company is

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The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions: the Perfume Division and the Bottle Division. The company is decentralised and each division is evaluated as a prot centre. The Bottle Division produces bottles that can be used by the Perfume Division which produces perfume. The following information relates to the production of bottles. Bottle Division Production capacity 50, 000 so. mu External demand 3, [100 3 Variable costs per unit {15): -Shipping cost (11 xed cost per month [E] 25, m0 Question 1 Calculate the total opportunity cost Bottle Division will incur if they meet the internal demand from Perfume Division :3 4200 Your last answer was interpreted as follows: 4200 Question 2 Calculate the transfer price of one bottle using the general transfer-pricing formula. Please round your answer to 2 dec places. :5 1.68 Your last answer was interpreted as follows: 1.68

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