Blue Corporation makes backpacks, with a specialty line for baseball players. This backpack has a spot for everything-helmet, spikes. glove, and bats-and it comes with a hook at the top that makes it easy to hang from a chain link fence in the dugout. The backpack division buys the hooks from-you guessed it-the hook division, which has enough capacity to meet both internal and external demand. At present, the hook and backpack divisions have agreed on a transfer price of $0.75 per hook. Current volumes, costs, and prices are listed below for each division for one month. The costs for the backpack division reflect all unit backpack costs, except for the hook. Hook Division Backpack Division Variable cost per unit $0.50 $18.00 Absorption cost per unit $0.75 $21.00 Market price per unit $0.90 $4800 Quantity produced 2,100 800 Quantity sold externally 1,300 800 Quantity sold internally 800 (a) * Your answer is incorrect According to the information given, how much gross margin would each division report for one month? How much total gross margin would the company report (before eliminating intracompany transactions)? Hook division Gross margin Backpack division Total 1520 $ 20000 20520