1)Bemidji Company has two divisions, Cass and Beltrami. Cass produces a unit that Beltrami could use in its production. Beltrami currently is purchasing 50,000 units from an outside supplier for $50. Cass is operating at less than full capacity and has variable costs of $27 per unit. The full cost to manufacture the unit is $40. Cass currently sells 450,000 units at a selling price of $54. If an internal transfer is made, variable costs of $2 shipping and administrative could be avoided. Assume a transfer price of $45 is agreed upon. What would be the impact on Bemidji Company's overall profits? 2)UMUC Corp. has two divisions, Europe and Asia. Europe produces a widget that Asia could use in its production. Europe's variable costs are $2 per widget while the full cost is $3.50. Widgets sell on the open market for $6 each. If Europe has excess capacity, what would be the minimum transfer price if Asia currently is purchasing 100,000 units on the open market? 3) Bisson Inc. has a profit margin of 12% and an investment turnover of 2.5. Sales revenue is $600,000. What is the operating income?