2. Pittman Manufacturing Company has two divisions, P and F. Division P prepares the steel for processing. Division F processes the steel into the final product. No inventories exist in either division at the beginning or end of 2018. During the year, Division P prepared 80,000 lbs. of steel at a cost of $800,000. All the steel was transferred to Division F where additional operating costs of $5 per lb. were incurred. The final product was sold for $3,000,000. Required: a. Determine the gross profit for each division and for the company as a whole if the transfer price is $8 per lb. b. Determine the gross profit for each division and for the company as a whole if the transfer is $12 per lb