59Q2. Titanium Castings Ltd has a Castings Division that does casting work of venous types. The company's 00 Machine Products Division has asked the Castings Division to provide it with 22,000 special castinps each ym 01 on a continuing basis. The special castings would requue $10 per unit in varuble production costs. The Machine t2 Products Division has a bid from an outside supplier of $30 per unit for the castings 3 64 In order to have time and space to produce the special castings, the Castings Divisaon would have to cut back production of another casting the RX100, which it presently is producing. The RX100 sells for $34 per unit, and requires $14 per unit in variable production costs Boxing and shipping costs of the RX100 ae 53 per il Boxing and shipping costs for the new special castings would be $1 per unit. The company is now producing and selling 100,000 units of the RX100 castings each year. Production and sales of this casting 9 would drop by 22% if the new casting is produced 56 8 Required: Show any all work a) Calculate the transfer price of the Castings Division if the transfer of 22,000 special castings was to take place between the two divisions. (5 marks) Transfer price of Castings Division b) What is the transfer price of the Machine Products Divison? (1 mark) New SECTION 6 FORMULA SHEET SECTION 5 SECTION 3 SECTION 4 SECTION 2 tortructions b) What is the transfer price of the Machine Products Divison? (1 mark) 80 Transfer price of Machine Products Division 82 82 c) What is the transfer price range between the two divisid 83 84 85 86d) Do you think this transfer shoul take place? (1 mark) 87 38 9e). Briefly explain why you said yes or no in (d) above. (2 marks)