I need a correct answer

Example: The AB Company has two divisions: X and Y. One of the parts produced by division X is used in the manufacture of a product that is assembled at Division Y. This part is not unique and there is readily defined market such that X can sell outside the firm and Y can buy from outside. The following details are available in respect of Division X: Capacity to produce the part 125,000 units External sales at 100 per unit 100,000 units Transfer to Division Y 25,000 units 84 Costs: Variable manufacturing cost per unit Variable selling costs 2. (On external sales only but not incurred on internal transfers) 6 Fixed manufacturing cost (based on 125,000 units) 1 Fixed selling cost (based on 100,000 units) Division Y represents the following data on the assumption of a volume of 25,000 units (one part is needed for each unit of its own production): 100 Variable manufacturing cost per unit (Exclusive of transfer price or outside purchase price) 6 Variable selling expenses per unit Fixed manufacturing cost 10 Fixed selling expenses 4 Selling price of finished product 240 Required: 1. If Division X could sell 125,000 units as 100 each in the outside market, what transfer price, would the central management prefer in order to provide proper motivation to As management accountant, would you advise Division Y to buy at the transfer price determined in part (1)? Division Y? 2 3. 4. Assume transfer price as in (1) if selling price drops to 3 200, should Y buy at that price? Would this be desirable from the point of the firm, why? Assume that Division X's product did not have an outside demand in excess of 100,000 units and its total fixed manufacturing cost could be reduced by 10%, if the volume of production were reduced to 100,000 units, what is the appropriate transfer price? Suppose that X division's maximum outside demand is 110,000 units at * 100 and there is no other usage for the capacity. What transfer prices should the company management 5. prefer. 6. Suppose the unit selling price of Y's product is 180; one of its customers is also a customer of Division X; division Y refuses to buy the part from the outside market at 100 since the selling price of 180 would not cover the variable costs, if Division X does not cover the transfer price, Division Y will not sell to this customer, who in turn will probably cancel the usual order of 50,000 units to Division X; there is no other demand for the product and no other usage of X capacity; fixed costs would not change at either division. What is the lowest transfer price that the Division X would be advised to accept? Support your recommendation with computations