Question 4 (Total: 25 marks) J & J operates in two division, April and March. The Division April makes Part X, a material that is used by the Division March. The relevant information on the material is as follows: Selling price Variable manufacturing cost Fixed manufacturing overhead Expected sales in boxes RM370 per unit RM110 per unit RM40 per unit 8,000 units The Division April can produce 21,000 boxes of Part X annually. The Division March needs 8,000 units of Part X for its product. i. What is minimum transfer price? Determine the minimum transfer price that Division April would accept. (4 marks) What is maximum transfer price? Determine the maximum transfer price that Division March is willing to pay. (4 marks) ii. iii. If Division April makes and sells 30,000 units of Part X in a highly competitive market, determine the best transfer price for Part X. (3 marks) iv. Explain the importance of transfer pricing to J & J. (10 marks) V. Explain what is market-based transfer price and provide one (1) advantage of using it as a basis for transfer pricing. (4 marks)