1. A company has two profit centers, A and B. A sells two-thirds of its output on the open market and transfers the remaining one-third to B, charging nothing for it. Costs and external revenues in an accounting period are as follows. A B Total $ $ $ External sales 8,000 24,000 32,000 Costs of production 12,000 10,000 22,000 Company profit 10,000 Required: What are the consequences of setting a transfer price at market value to the profit of A, B and the company as a whole? Show full workings, preferably using a brief income statement format, and include a brief commentary as well