Genetex Rub Sdn. Bhd. which has expanded its operation through its two main divisions namely Eastanol and Westanol Division, is a well known produces of electrical appliances. In order to maximize the company profit, the company's board management strongly encourage inter-trading between its divisions. The Eastanol Division specializes in producing microchips known as Chip Triple. They can produces 10,000 units per annum. The microchips are transferred to Westanol Division, where they can be installed in the electrical appliances. Eastanol Division also sells the Chip Triple externally at RM18 per unit. The Westanol Division also get offer from external supplier at the price of RM16.50. Expected sales revenue earned by Westanol for the year ended 31 December 2022 is RM300,000. The following is the estimates costs data to produce Chip Triple for the year ending 31 December 2022: Direct material cost Direct labour hours Direct labour rate per hour Variable overhead Fixed overhead per annum RM 3.50 4 hours RM0.80 1.50 10,000 Required: (a) Calculate the minimum transfer prices if Eastanol Division operate at full capacity. One quarter of its production is transferred to the Westernol Division and the balance sold to external customers. Justify your answer. (6 marks) (b) External customer request 5,000 units and Westanol Division request 9,000 units. The internal customer made a special request for the microchips to be added with rivet stainless steel which cost will be increased by RM2.80. Determine the lowest possible price that Eastanol Division can offer to Westanol Division. Justify your answer either transfer pricing should take place of not.. (6 marks) (c) Assume that the production of Eastanol Division has been expanded by 75% due to new branch opening. External customer request have eventually reached 60% of the new capacity while internal customer request for 7,300 units. At the same time the variable cost for internal transfer has been reduced to RM5.70 due to materials were mostly bought through a special deal from a supplier's year end sale. Determine the lower limit and the number of unit that can finally be sold to external customer. (7 marks) (d) Westanol Division request 5,500 Chip Triple from Eastanol Division. In order to have time and space to produce Chip Triple, the Eastanol Division would have to sacrify the production of Battery Chip by 2,800 units. Currently, the Battery Chip was sold at RM42 per unit with variable cost of RM23. If the transfer pricing happened, cost for sales commission by RM1.90 could be eliminated. Calculate the minimum transfer pricing based on that situation. (6 marks)