100 % correct only other wise downvoted .

23. Transfer Pricing using Revenue, Marginal Revenue Equations - Price and Quantity Relationships Eastem Company Ltd (ECL) has two Divisions namely Casnub Bogie Division (cure and wagon Division (woj. let manufactures Casnub Bogies and WD manufactures BOBN type of Wagons. To manufactureide case. WD nneds four Castello Bogies. CBD is the only manufacturer of the Casnub Bogies and supplies both WD and outside customers. Details of ceo rana WD for the coming financial year are as follows: Particulars Fixed Costs Variable Cost per unit) Capacity per month (units) WD 16,45,36,000 CBD 9,20,20,000 2,20,000 320 (excluding Transfer Costs) 4,80,000 12 Market Research has indicated that the demands in the market for ECL's products at different quotations are as follows: For Casnub Bogies: Quotation Price of 33,20,000 no tender will be awarded, but demand will increase by 30 Casnut Bogies with every * 10,000 reduction in the Unit Quotation Price below 3,20,000. For Wagons: Quotation Price of * 17,10,000 no tender will be awarded, but the demand for Wagons will be increased by two Wagons with every 50,000 reduction in the Unit Quotation Price below 17,10,000. Required: (a) Calculate the Unit Quotation Price of the Wagon that will maximize ECL's Profit for the coming financial year. (b) Calculate the Unit Quotation Price of the Wagon that is likely to emerge if the Divisional Managers of CBD and WD both set Quotation Prices calculated to maximize Divisional Profit from Sales to outside customers and the Transfer Price is set at Market Selling (Quotation) Price. [Note: if P= a - b Q then MR = a - 26Q]