The Wire Products Division of Sulphur Steel Corporation produces "bales" of steel wire that are used in various commercial applications. The bales sell for an average of $20 each and the Wire Products Division has the capacity to produce 10,000 bales per month. The Consumer Products Division of Sulphur Steel Corporation uses approximately 2,000 bales of steel wire each month in its production of various appliances. The operating information for the Wire Products Division at its present level of operations (8,000 bales per month) follows: Sales (all external) Variable cost per bale: Production $160,000 $5 Selling G&A Fixed costs per bale (based on a 10,000 unit capacity: Production Selling G&A 2 3 234 The Consumer Products Division currently pays $15 per bale for wire obtained from its external supplier. Required: a. Refer to Sulphur Steel Corporation. If 2,000 bales are transferred in one month to the Consumer Products Division at $10 per bale, what would be the profit/loss of the Wire Products Division? (2 marks) b. Refer to Sulphur Steel Corporation. For the Wire Products Division to operate at break-even level, what would it need to charge for production and transfer of 2,000 bales to the Consumer Products Division? Assume all variable costs indicated will be incurred by the Wire Products Division. (3 marks) c. Refer to Sulphur Steel Corporation. If Wire Products Division transferred 2,000 wire bales to the Consumer Products Division at 200 percent of full absorption cost, what would be the transfer price? (2 marks) d. Refer to Sulphur Steel Corporation. Assuming, for this question only, that the Wire Products Division would not incur any variable G&A costs on internal sales, what is the minimum price that it would consider accepting for sales of bales to Consumer Products Division? (2 marks)