47. (8 points) Metal Corp. produces and sells metal products using two operating divisions: Fabrication and Assembly. The Fabrication Division manufactures 15,000 units and incurs variable costs of $1,900,000 and fixed costs of $420,000. All units are transferred to the Assembly Division, where additional manufacturing costs equal $110 per unit. The Assembly Division then sells the units externally for a price of $300 per unit. If the Fabrication Division were to sell the units externally the market price for the intermediate product is $185 per unit. a. Using a transfer price based on total manufacturing costs prepare Operating Income Statements for each Division: Fabrication and Assembly. b. Using an external market-based transfer price prepare Operating Income Statements for each Division: Fabrication and Assembly. c. What is an important advantage of using a transfer price based on external market-based transfer prices as in part b