) Booty explain why transfer prices based on total actual costs are not appropriate the basis for divisional performance measurement (3 marks b ) If KAC introduced the use of negotiated transfer prices and allowed divisions to buy and sell on the open market determine the range of transfer prices for the mineral that would be ac coptable to both the Refining and Processing Divisions . Explain your answer (3 marks by 200 090 units of the mineral could be sold by RD to the open market at $270 would this change your answer to ( by above it PD still wanted to purchase the 400 090 Lines of mineral internally ? If so how ? Explain (3 marks I ) If PD can refine anginor too ooo units of the mineral but cannot sell this additional volume to the market , what would be the range of transfer prices between which this transfer of too ooo units could take place between FID and PD ? ( @ marks 1 ) If the Flolining Division and the Processing Division were situated in different countries and subject to different taxation laws , how might this affect the transfer pricing policy of KAC ? Explain with reference to the Processing Division being in the lower taxing country 13 marks