Divisional Income StatementsFor the Year Ended December $31,20$Y$8$SemiconductorsNavigationnSystemsDivisionDivisionTotalSales:$2,240$ units x $5396$ per unit$1004\mathrm{.}001$$$887,0403,675$ units x $$590$ per unitBOO$0\mathrm{.}2002,168\mathrm{.}250$Total sales$$887,040$$$2,168,250$$$3,055,290$Expenses:verlable:$2,240$ units x $$232$ per urve$$(519\mathrm{.}680)$$$(519,680)3,675$ units x $5472*$ per unit$$(1,734,600)(1,734,600)(220,000)(325,000)(545,000)$Total expenses$$(739\mathrm{.}080)$$$(2,059\mathrm{.}600$$$(2,799,280)$Operatina income$$147,360$$$256\mathrm{.}010$Transter pricingExoplex Industries Inc. Is a diversified aerospace company, including two operating divisions, Semiconductors and Navigational Systems. Condensed divisional income statements, which involve no intracompany transters ancinclude a breakdown of expenses into variable and fixed components, are as follows:Exoplex Industries Inc.$\backslash$deg $$432$ of the sa$72$ per una represents materials costs, and the remaining $540$ per unit represents othor variable conversion expenses incurred within the Navigational Systems DivisionThe Semiconductors Division is presently producing $2,240$ units out of a total capacity of $2,820$ units. Material used in producing the wavigational Systems Division's product are currently purchased from outside suppliers at a price of $$432$ per unit. The Sem$$conductors Division is able to produce the components usad by the Navigationa Systems Division. except for the possible transfer of materials between divigions, no changes are expected u sales and expenses.Reouired$\mathrm{.}1.$ Would the market price of $$432$ per unit be an appropriate transfer price for Exoplox Industries Inc.?$2.$ If the Navigational Systems Division purchases $580$ units from the Semiconductors Division, rather thon externally, at a negotiated transfer price of $$310$ per unit, how much would the operating income of each divisionand total company operating income increase?The semiconductors Division's operating income would increase bThe Navigational Systems Division's operating income would increase byExoplex Industries Inc.$\text{'}$s total operating income would increase by$3.$ Prepare condensed divisional income statements for Exoplex Industries Inc. based on the data in part $2)$Exopiex industries incDivisional Income StatementsFor the Year Ended December $31,2078$SemilNavigationalconductorsLine Item Descriptionsales$\mathrm{.}2,240$ units$580$ units$3\mathrm{.}675$ unitslotal salesexpenses:Variable:$2,020$ units$580$ units$3,095$ unitsFixedTotal expensesUperaung income$4.$ If a transter price of $$340$ per unit Is negotlated, how much would the operating income of each division anc total company operating income Increase?The Semiconductors Division's operating income would increase byThe Navigatonal Systems Division's operating Income would increase oExoplex Industries Inc.$\text{'}$s total operating income would increase by$5$a$.$ What is the range of possible negotiated transfer prices that would be acceptable for Exoplex Industries Inc.?Any transter price than the semiconductors Division's variable expenses der unit butthan the market price would be accentableSb. Assuming that the managers of the two divisions cannot agree on a transter pnice, what price would yousuogest as the transfer price?