Question 3 (40 points) Enormous Engineering (EE) is a large multidivisional engineering company having interests in a wide variety of product markets. The Industrial Products Division (IPD) sells components to consumer appliance manufacturers, both inside and outside the company. One such part, a motor unit, it sells solely to external customers, but buys the motor itself internally from the Electric Motor Division (EMD). EMD makes the motor to IPD's specifications and it does not expect to be able to sell it to any other customer. IPD's sales and production data are shown below; EMD offers a transfer price of N16 to IPD. The variable and fixed costs per unit for EMD are N6 and N6 respectively, giving a total cost of N12 per unit. IPD will incur only a variable cost of N4 on the component (amounts in N000 ). Required: a) Show the profit computations for both divisions and the company as a whole [21 points] b) What selling price and quantity would IPD select, and why? [4 points] c) What selling price would be in the overall company interest, what would be the likely reactions of the managers of IPD and EMD, and what resolution would you propose? [15 marks]