Your company fixes the inter-divisional prices for its products on the basis of

Your company fixes the inter-divisional prices for its products on the basis of 1) Cost plus a return on investment in the division and i) Cost plus % 20 of such transfer price The budget for division ABC for the year 2012-13 has been prepared as follows- Particulars Investment in Division ABC Debtors Other current Assets Annual fixed cost of the division Variable cost per unit of the division Budgeted volume for the year Desired return on Investment Amt in 10 4,00,000 units 20% Determine the transfer price for division ABC on the basis of i) Cost plus return on investment. ii) Cost plus 20% of such transfer price.