Abbey Road Enterprises $($Abbey Road$)$ is a multi$-$divisional manufacturer of technology$-$based solutions for the solar$-$panel industry. CEO Georgina Martinez is happy for divisions to act as autonomous work$-$units; which she calls investment centres. This seems to have worked successfully in the past with all three divisions having consistently met their financial targets.

The existing transfer pricing policy at Abbey Road is: full sourcing autonomy and use of the negotiated method, where the prevailing market price is generally used as the starting point of negotiations. Approximately $50\%$ of each divisions' activity is currently transferred internally. Georgina would like this to increase in the future. Given there is sourcing autonomy, disputes often arise; in which case, Valencia Yang, from the accounting function is assigned the task of finding a resolution.

A dispute has arisen as Yang needs your help:

The McCartney Division $($McCartney$)$ has developed a new component that meets the needs of the Ringo Division $($Ringo$).$ The component uses parts produced by the Harrison Division $($Harrison$).$ Currently Harrison has no trouble supplying these parts as it has spare capacity. Ringo uses the component in a variety of applications, which is expected to continue at least for the next few years.

The McCartney divisional manager, Rachel Jensen, believes the component should be sourced from her Division, partly dute to the fact that there had been some co$-$operation between the Ringo and McCartney in the development of the component. The Ringo divisional manager, Lilli Pang, thinks otherwise.

Two outside companies$($Lennon and Best$)$ have also offered to supply the new component. Furthermore, if one of these $-$ Lennon was to be the preferred supplier, it would source some components from both Harrison and McCartney.

A summary of the situation including the various costs and selling prices is provided in the diagram below.If Yang mandated that the Ringo Division source the component from the McCartney Division at $$420$ which of the following statements is True:

The equal sharing of profits between McCartney and Harrison will leave the Ringo Division unable to generate a profit itself.

The equal sharing of profits between the McCartney and Harrison Divisions would result in $$75$ profit each

The equal sharing of profits between the McCartney and Harrison Divisions would result in $$80$ profit each

The share of profits would be McCartney Division $$100$; and Harrison Division $$90.$

The sharing of any profits is irrelevant as the transaction is internal to Abbey Road Enterprises.