Portable garage co march june 2018

Hi Dear Tutor.

only part b)

GENERAL RULE!!!

Seller perspective–Minimum transfer price

Total capacity-350000 units
External demand-200000 units
Spare capacity-150000 units

Internal demand-180000 units
————————————————————MC+ OP
internal demand 150000 units ———————-7$+0=7 Min or more

Shift from external 30000 units———————-7$+(external selling price 15-(7$+1$)=14$

Buyer prespective-Maximum transfer price

30000 units Division B will buy from outside supplier at 13$
150000 units Division B will buy from internal Division A at 13$

Group prespective

30000 units division B will buy from outside supplier at 13$
30000 units division A will sell to external customer at 15$

150000 units Division B will buy from division A at 13$ Max or less
150000 Division A will sell to internal division at 13$ Min or more

Division————————————————A————————————B
——————————————————$000———————————$000
External sales(200*15)———————30000——————-(180*180)—–32400
internal sales (150*13)———————1950
Material cost(350*3)———————–(1050)———(180*45)———————(8100)
Internal purchase—————————–nil————-(150*13)——————-(1950)
External purchase—————————-nil————–(30*13)———————(390)
Labor cost((350*4)————————-(1400————-(180*35$)—————(6300)
Selling cost(200*1)————————-(200)——————————————nil
Fixed cost————————————-(2200)—————————————(5460)
Profit———————————————-100—————————————–10200

I know i do not need to write for Part b in this way but for my own understanding i wrote it, and does part b’s Division B calculation is correct?Did i make any mistakes in Division B calculation?

I only write part a’s profit for each group

Division———————————————A————————————-B
profit————————————————100———————————–7590