A company has two divisions, East and West. East Division manufactures a component that West Division uses. The variable cost to produce this component is $2 per unit. The fixed cost to produce this component is 75 cents per unit. The component sell on the open market for $3.10. However, West Division is able to purchase the component for $3 from an external source. a) Assuming East Division has excess capacity, what is the lowest price East Division will accept from West Division for the component? b) Assuming East Division has excess capacity, what is the maximum price that West Division will pay East Division for the componet? c) How (if at all) would your answers to parts (a) and (b) change if East Division is operating at capacity without considering sales to West Division? d) What accounting concept guides the actions (or lack of actions) in the above parts?