only need correct answer pls

M07 41. Transfer related decision-making Hardware Ltd manufactures Computer Hardware Products in different divisions which operate as Profit Centres. Printer Division makes and sells Printers. The Printer Division's Budgeted Income Statement, based on a sales volume of 15,000 units in given below. The Printer Division's Manager believes that sales can be increased by 2,400 units, if the Selling Price is reduced by 20 per unit from the present price of * 400 per unit, and that, for this additional volume, no additional Fixed Costs will be incurred. Printer Division presently uses a component purchased from an Outside Supplier at 3 70 per unit. A similar component is being produced by the Components Division of Hardware Ltd and sold outside at a price of 100 per unit. Components Division can make this component for the Printer Division with a small modification in the specification, which would mean a reduction in the Direct Material Cost for the Components Division by 1.5 per unit. Further, the Component Division will not incur variable Selling Cost on units transferred to the Printer Division. The Printer Division's Manager has offered the Component Division's Manager a price of 50 per unit of the component. Components Division has the capacity to produce 75,000 units, of hich only 64,000 can be absorbed by the outside market. The current Budgeted Income Statement for Components Division is based on a volume of 64,000 units considering all of it as sold outside. Particulars Printer Division '000 Component Division 1 '000 1. Sales Revenue 6,000 2. Manufacturing Cost: Component 1,050 Other Direct Materials, Direct Labour & Variable OH 1,680 1,920 Fixed OH 480 704 Total Manufacturing Cost 3,210 6,400 2,624 Particulars 3. Gross Margin (1-2) Variable Marketing Costs Fixed Marketing and Administration OH 4. Non-Manufacturing Cost 5. Operating Profit (3 4) Printer Division '000 2,790 270 855 1,125 1,665 Component Division? '000 3,776 384 704 1,083 2,688 Required: 1. Should the Printer Division reduce the price by