Detween divisions, no ctanges are expected in sales and expenses. Required 1 1. Would the manket price of 5150 per ung, be an appropriate transfer pence for carcon inc.? income of each division and the total compary operating income increase? The Consumer Dpatows operating inctene wovld increase by The Commercial Owsson's escrating income woud increase or 1 Garcoe Incis totat poerating income would increase by 1 3. Prepare condensed divisional income statements for Garcon Inc. based on the data in part (2). Garcon Inc. Divisional Income Statements For the Year Ended December 31, 20Y2 \$150 of the s193 per unit represents matenals costs, and the remaing $43 per unik represents ether variable converion expenses incurred within the commeroar oivision. from butside supplers at a price of $150 per uns. The Consumer Division is abie to produce the materisis used by the Commercial Divivion. Except for the possible transfer of materiat between divisions, no changes ore expected in sales and expenses. 4. If a transfer price of $126 per unit is negotiated, how much would the operating income of each division and the total company operating income increase? The Consumer Division's operating income would increase by \$ The Commercial Division's operating income would incresse by s Garcon Inci's total operating income would increase by 5 5a. What is the range of possible negotiated transfer prices that would be acceptable for Garcen Inci? Any transfer price than the Consumer Division's variable expenses per unit but than the market price would be acceptable. 5b. Assuming that the managers of the two divisions cannot agree on a transfer price, what price would you suggest as the transfeir price? Detween divisions, no ctanges are expected in sales and expenses. Required 1 1. Would the manket price of 5150 per ung, be an appropriate transfer pence for carcon inc.? income of each division and the total compary operating income increase? The Consumer Dpatows operating inctene wovld increase by The Commercial Owsson's escrating income woud increase or 1 Garcoe Incis totat poerating income would increase by 1 3. Prepare condensed divisional income statements for Garcon Inc. based on the data in part (2). Garcon Inc. Divisional Income Statements For the Year Ended December 31, 20Y2 \$150 of the s193 per unit represents matenals costs, and the remaing $43 per unik represents ether variable converion expenses incurred within the commeroar oivision. from butside supplers at a price of $150 per uns. The Consumer Division is abie to produce the materisis used by the Commercial Divivion. Except for the possible transfer of materiat between divisions, no changes ore expected in sales and expenses. 4. If a transfer price of $126 per unit is negotiated, how much would the operating income of each division and the total company operating income increase? The Consumer Division's operating income would increase by \$ The Commercial Division's operating income would incresse by s Garcon Inci's total operating income would increase by 5 5a. What is the range of possible negotiated transfer prices that would be acceptable for Garcen Inci? Any transfer price than the Consumer Division's variable expenses per unit but than the market price would be acceptable. 5b. Assuming that the managers of the two divisions cannot agree on a transfer price, what price would you suggest as the transfeir price