Question: Please give me the solution process and answer to each of the questions a,b,c,d. (W) Eastern Company 's Income Statement with no transfers between divisions

Please give me the solution process and answer to each of the

Please give me the solution process and answer to each of the questions a,b,c,d.

(W) Eastern Company 's Income Statement with no transfers between divisions are as follows. (Division A_Supplying Division, Division B_Demanding Division, Company as a whole) Instructions) (a) Assume that Division B currently purchased intermediate products from outside suppliers at 20 per unit. If Division A operate at the full capacity, What is optimal transfer price? (b) Assume that Division B currently purchased intermediate products from outside suppliers at 20 per unit. and Division A operate under the full capacity. If Division B needs 20,000 units and transfer price is set at $15, calculate the income from operations of division A, B and company as a whole. (c) Assume that Division B currently purchased from outside suppliers at 20 per unit. and Division A operate under the full capacity. If Division B needs 20,000 units and transfer price is set at $20, calculate the income from operations of division A, B and company as a whole. (d) Explain the range of the negotiated transfer price between division A and B for maximizing income of company as a whole

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