$$Boston$,$Inc$.,$ has two$$ divisions, A and$$ B$,$ that manufacture expensive bicycles. Division A produces the bicycle$$ frame, and division B assembles the rest of the bicycle onto the frame. There is a market for both the subassembly and the final product. Each division has been designated as a profit center. The transfer price for the subassembly has been set at the$$ long$-$run average market price. The following data are available for each$$ division: $1.$

Should transfers be made to division B if there is no unused capacity in division$$ A$?$ Is the market price the correct transfer$$ price? Show your computations.