The Northwest Division of Kebalo Electric produces hydroelectric power. The power plant has seven machines that can harvest hydroelectric power on a continuous process such that the capacity of the plant is 5.000 machine hours per month. The plant produces three types of electric power. Energy type \"Standard" is not easily stored. energy type \"Super\" is easier to store and send to more remote regions. and energy type \"Bad\" has no external market. However. energy type \"Bad\" is easily transferred to the Southwest Division of Kebalo Electric where it can be transferred into a marketable energy source by the Southwest Division. The Southwest Division can further process the \"Bad" energy at a variable cost of $1 per unit and sell it for $5 per unit. The selling price for the energy types are as follows (note: a unit of energy is a kilowatt-hour): "Super" "Standard" "Bad" Selling Price/unit 6 3.5 Variable Cost/unit 2 1 3 Total Fixed Cost $15,000 Machine hours/unit 0.5 0.25 The external demand for each energy source in units (kilowatt-hours) is as follows: "Super" "Standard" "Bad" Demand in units (kilowatt- hours) 3,000 1,500Which product generates the greatest contribution margin per machine hour for the Northwest Division? 0 Super 0 Standard 0 Bad Q2 What is the optimal transfer pricing schedule for the Northwest Division to charge the Southwest Division for "Bad" energy? Note: there are three transfer prices at three separate intervals, please type the optimal transfer price for each interval using just whole numbers (e.g. 12). 0-3,125 units the transfer price = 3,126-4,625 units the transfer price = 4,626-5000 units the transfer price =The taxing authorities agree that the transfer price from the Northwest Division to the Southwest Division can be in a range of $3M to $14lu. What is the optimal transfer price [from the perspective of Kebalo Electric as a whole] it the Southwest Division resides in a region that is regulated by a tax rate of 35%, whereas the tax rate for the Northwest Division is only 15%? [please submit your answer as a number). H i Q4 In one or two clear, concise. and complete sentences explain your answer to the question above. 1till'hat is the maximum total contribution margin of Kebalo Electric (hint: calculate the total revenue and subtract the total variable cost noting that the constraint is machine hours and there is an optimal production schedule of Super, Standard, and Bad power). Suppose that the CEO of the rm forces the Northwest Division to transfer 4,000 kilowatt-hours of \"Bad" power to the Southwest division at $4.00 per kilowatt-hour. What is the cost or benet to the total prots of the rm if the Northwest division is forced to transfer 4,000 kilowatt-hours of \"Bad\" power to the Southwest division at $4.00 per kilowatt-hour? Ignore the taxes mentioned above in this analysis. In one or two clear, concise. and complete sentences explain your answer to the question above
