Wood Inc. manufactures wood poles. Wood has two responsibility centres, harvesting and sawing, which are both evaluated as profit centres. The harvesting division does of the harvesting operations and transfers logs to the wood pole that can be a lower price and could allow the firm to operate al capacity all the time sawing division, which converts the wood into poles for external cients. When persong at full capacity, the sewing division can convert 15.000 poles Management is considering replacing this type of wood pole with another type of The director of the sawing division suggested that the maimum price the division can pay for each log from harvesting is $30.40. Following is the formation that supports this suggestions Price per pole that the client would $92 Direct labour costs $35.00 Variable overhead costs 4.00 Faced overhead costs 8.20 Raw material costs (other than logs) 2.40 49.50 Proft margin 12.00 Total costs and profit margin 61.00 Maximum price for a log $30.40 The director of the harvesting division disagrees with selling the logs at a price of $30.40. The division is operating at full capacity and sets logs to external clients for $45.00. Moreover, the director says, "My direct labour costs are $23.30, my variable overhead costs are 14.30, and my feed overhead costs are $9.10. I can't out trees for $36.70 and sell them for $30.40." Assuming production is a full capachy, determine whether Wood Inc., as a whole, would make a higher proftlogs were transferred to the sewing division for $30.40 per log. Contribution margin from selling logs Contribution margin from selling poles It would be for Wood Inc, to transfer the logs at $30.40. Calculate the minimum and maximum transfer prices that could be used, and recommend an appropriate transfer price (Round answers to 2 decimal places, s.9. 15.25.) Minimum transfer price Maximum transfer price $ Appropriate transfer prices