Please answer questions 1-5 and show work with also completing the table below

ACCT 4233/5233 Transfer Pricing and Goal Congruence Production Department Revennes and Costs 1) If production transfers all cases to labeling Revenues from transfers to labeling Variable production costs production costs {2) If production sells 4 to ABC & transfers % to labeling Revenue from sales to ABC Mig Fixed production costs Labeling Department Revenues and Costs Revenue from sales on external market Transfer costs from production Additional fixed labeling costs 2) If production sells % to ABC & transfers +i to labeling Revenue from sales on external market Transfer costs from production Additional fixed labeling costs ACCT 4233/5233 Transfer Pricing and Goal Congruence Total Revenues and Costs for Southern Glass (1) If production transfers all cases to labeling Production dept. variable costs Production dept. fixed costs Label dept. external sales Label dept. additional fixed costs Net Profit* (2) If production sells %% to ABC & transfers % to labeling Production dept. external sales Production dept. variable costs Production dept. fixed costs Label dept. external sales Label dept. additional fixed costs Net Profit* * *This profit should equal: production net profit + labeling net profit for option (1) in the first two tables This profit should equal: production net profit + labeling net profit for option (2) in the first two tablesACCT 4233/5233 Transfer Pricing and Goal Congruence Southern (Glass manufactures glass bottles for a variety of products, including perfume bottles and liquor bottles. The company has two profit centers: production and labeling. The production department melts the raw materials, adding metal oxides to produce different colors if desired. It then uses a continuwous rolling process to shape the bottles. Next, production transfers the bottles to the labeling department at an average cost of $15 ($12 variable; 3 fixed) per case. The labeling department attaches labels to the bottles at an additional fixed cost of $1 per case. The labeled bottles are then sold on the external market at an average price of $30 per case. Recently, ABC Mfg. Co., a regional liquor manufacturer, contacted the manager of the production department about purchasing '4 of the 250,000 cases that Southern Glass plans to make in April. ABC Mfe. would like Southern Glass to start making ABC's specially shaped bottles. They are willing to pay 528 per case. ABC does not want labels attached to their bottles; therefore, they would be shipped directly from Southern Glass to ABC afier production. Making the special bottles would not affect the production department's cost but it would require cutting its current internal bottle production by ; in other words, Southern Glass production would transfer %4 (187,500 cases) to labeling, where the bottles would be labeled and sold on the external market. The remaining % (62,500 cases) would be sold to ABC Mfg. immediately after production (no labels attached). Answer questions 1-5 below after completing the tables on the following pages: (1) Will the production department prefer to sell all 250,000 cases internally or sell %4 (62,500) cases to ABC Mfg. and % (187,500) to the labeling department? {2) Will the labeling department prefer to purchase all 250,000 cases internally or allow production to sell ' (62,500) cases to ABC Mfg.? (3) Will company profits be maximized if the production department sells all 250,000 cases intemnally or sells ' (62,500) cases to ABC Mfg. and % (187,500) internally? {4) Why is there a goal congruence problem (hint: does everyone want the same option)? (5) Provide one specific policy change that can solve the goal congruence problem illustrated in this example (at a minimum, there are three changes you only need to provide one). How does your change solve the