45nPlease help

45. (8 points) Galaxy Corp manufactures high end telescopes and has two divisions: Assembly and Finishing. The Assembly division manufactures lenses that can be sold immediately after assembly for $900 or can be process further in the Finishing Division. After work is completed in the Finishing Division, the Finished Telescopes sell for $1,200 per unit. Financial results from the most recent period are as follows: Assembly Finishing Division Division Variable manufacturing costs 5 650 S 200 Fixed manufacturing costs 3 50 S 50 External sales price $ 900 $ 1,200 a. Using a transfer price based on total manufacturing costs prepare Operating Income Statements for each Division: Assembly and Finishing. b. Using a market-based transfer price prepare Operating Income Statements for each Division: Assembly and Finishing. c. For Galaxy Corp. (total company perspective) which transfer price option (cost-based or market based) is preferred? Why is this method preferred