Problem IIL (30 points) Transfer Pricing Max Ltd. Produces kitchen tools, and operates several divisions as profit centers. Division A produces a product that it sells to other companies for $16 per unit. It is currently operating at its full capacity of 45,000 units per year. Variable manufacturing cost is $9 per unit, and variable marketing cost, for outside sales, is $3 per unit. The company wishes to create a new division, Division B, to produce an innovative new tool that requires the use of Division A's product (or one very similar). Division B will produce 30,000 units. Currently, Division B can purchase a product equivalent to Division A's from Company K for $15 per unit. However, Max Ltd, is considering transferring the necessary product from Division A Required: 1) Assume the transfer price is $12 per unit. How would this affect the purchasing costs of Division B? 2) How would this affect the profits of Division A