Carson Corporation, headquartered in the South Dakota, manufactures state-of-the-art milling machines. It has two marketing 11 points Save Answer subsidiaries, one in Alabama and one in Nevada, that sells its products. Carson is building one new machine, at a cost of USD$550,000. There is no market for the machine in South Dakota, but the machine can be sold in Alabama for USD$1,000,000. The Alabama subsidiary, however, would incur transportation and modification costs of USD$220,000. Alternatively, the machine can be sold in Nevada for USD$950,000, but the Nevada subsidiary would incur transportation and modification costs of USD$250,000. Carson can sell the machine to either the Alabama or Nevada subsidiary, but not to both. The Carson Corporation and its subsidiaries operate in a highly decentralized manner. Managers in each company have considerable autonomy and are interested in maximizing their own company's income. Required: 1. Compute the operating income for Carson: - if the machine is sold in Alabama - if the machine is sold in Nevada (4 marks) 2. Based on your calculation in requirement 1, where should Carson sell the machine to maximize its operating income? (1 mark) 3. What range of transfer prices will result in achieving the actions determined to be optimal in requirement 2? Explain your answer. (6 marks) For the tonlhar preer A1T+10