Gamma Inc. has a Sydney-based division that produces electronic components, with a very strong domestic market for circuit no. 105. The variable production cost is $140, and the division can sell its entire output for $190. Gamma is subject to a 30% income tax rate. Alternatively, the Sydney division can ship the circuit to a division that is located in Melbourne, to be used in the manufacture of a global positioning system (GPS). Information about the GPS and Melbourne's costs follow: Selling price: $380 Circuit shipping and handling fees to Melbourne: $10 Labour, overhead, and additional material costs of GPS: $120 Required: 1. Assume that the transfer price for the circuit was $160. How would Sydney's divisional manager likely react to a corporate decision to transfer the circuits to Melbourne? Why? (3 marks) 2.Calculate Sydney income, Melbourne income, and income for the company as a whole if the transfer took place at $160 per circuit. (7 marks) 3.Assuming the transfers took place at a price higher than $160, would the revised price increase, decrease, or have no effect on Gamma's income? Explain. (3 marks) (Total 13 markel