Question 2 BUA Ltd has two (2) divisions, A and B, and is a divisionalized company. Division A produces a component which is used by Division B in its final product. Division A is able to sell the component it produces internally and externally and has a capacity of 12,000 units. Division A can sell the component externally for 44140 per unit. Division B can sell up to 9,000 units of the final product at $180 per unit. The costs for both divisions are shown below; Division A Division B Variable cost per unit (AP) 75 30 Fixed costs (AP) 1,000,000 1,500,000 BUA Ltd is keen to understand divisional and overall contribution and profit and has requested a statement from you based on the above information. In addition, assume that Division A can only sell 4,000 units externally and the manager of Division B is unwilling to pay the market price for Division A's component. If, however, Division A lowers its selling price to 4-100 per unit, it can sell all its output externally. State three (3) options available to Division A and compute the contribution from each. Recommend an option to the Manager and discuss the impact on the company as a whole. Question 2 BUA Ltd has two (2) divisions, A and B, and is a divisionalized company. Division A produces a component which is used by Division B in its final product. Division A is able to sell the component it produces internally and externally and has a capacity of 12,000 units. Division A can sell the component externally for 44140 per unit. Division B can sell up to 9,000 units of the final product at $180 per unit. The costs for both divisions are shown below; Division A Division B Variable cost per unit (AP) 75 30 Fixed costs (AP) 1,000,000 1,500,000 BUA Ltd is keen to understand divisional and overall contribution and profit and has requested a statement from you based on the above information. In addition, assume that Division A can only sell 4,000 units externally and the manager of Division B is unwilling to pay the market price for Division A's component. If, however, Division A lowers its selling price to 4-100 per unit, it can sell all its output externally. State three (3) options available to Division A and compute the contribution from each. Recommend an option to the Manager and discuss the impact on the company as a whole