Please answer question attached

1. (25 pts) Comfy Corp. manufactures chairs and has two divisions: framing and upholstering. The framing costs are $100 per chair with a capacity to produce 500 frames per month. The upholstering costs are $200 per chair plus the cost of the frames. The upholstering division then sells the finished chairs for $500. Upholstering can produce up to 800 chairs per month, but they've never sold more than 500 in a month. Currently, the framing division transfers all of its production to the upholstering division. Recently, Saddleback, Inc. approached the framing division about using its frames for a new leather furniture line. Saddleback has offered to buy 100 frames per month from Comfy Corp. for $200 per frame. Required: a. Before Saddleback's offer, what is the highest transfer price the upholstering division should accept? b. Before Saddleback's offer, what is the lowest transfer price the framing division should accept? c. In light of Saddleback's offer, what should the transfer price be? d. Should Comfy Corp. accept Saddleback's order at $200? Explain