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Division A manufactures screens used in high-definition TVs. It sells its one product, a standard screen, for a price of $210per screen. Variable costs are

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Division A manufactures screens used in high-definition TVs. It sells its one product, a standard screen, for a price of $210per screen. Variable costs are $90 per screen, and allocated fixed costs amount to $95 per screen. Division B has asked Division A to supply 5,000 custom-made screens.These custom screens have a variable cost of $105 per unit. Division A believes that its standard screen and the custom screen for Division B consume the same amount ofcapacity to make. It now has the capacity to make 20,000 screens annually. Required: (3+3+3 = 9 points) For each of the following scenarios, what is the minimum transfer price per custom screen that Division A can set for this transfer and maintain its profit at the current level? a. Division A is currently making 12.000 standard screens. b. Division A is currently making 20,000 standard screens. c. Division A is making and selling 16,000 standard screens currently. Division B wantsto buy all 5.000 screens from Division A or none at

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