Champ Company manufactures only one type of machine and has two divisions Compressor and Fabrication. The Compressor Division manufactures compressors for the Fabrication Division, which completes the machine and sells it to retailers. The Compressor Division Currently transfers compressors intemally to the Fabrication Division. The market price for a compressor is $40.00 Current capacity for Champ Company is 10,000 machines Compressor's costs per compressorare: S100 5700 Direct materials Direction Variable overhead Division fixed costs 3750 Fabrication's costs per completed air conditioner are: Direct materins Direct labor Variable overread Division fixed costs 3750.00 52000 37.50 Assume the transfer price for a compressori 140% of total costs of the Compressor Division and 900 of the compressors are produced and transferred to the fabrication on The Comes Division's opening income is Me Choce 30