Exercise 22-17 Twyla Company is a mutidivisional company,. Its managers have full responsibility fer profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a subassembly part for which there is a competitive markket. Division B currently uses this subassembly for a final product that is sold outside at $2,400. Division A charges Division B market price for the part, which is $1,500 per unit. Variable costs are $1,100 and $1,200 for Divisions A and B, respectively. The manager of Division B feels that Division A should transfer the part at a lower price than market because at market, Division B is unsble to make a profi. Calculate Division B's contribution margin I transfers are made at the market price, and calculate the company's total contrbution margin. (Enter negatlve amounts use either a negative sign preceding the number eg -45 or parentheses eg (45)) Division B's contribution margin Company's total contribution margin s Assume that Division A can sell all its production in the open market. Should Division A transfer the goods to Division B? every month. Assume also that a 20% reduction in price is necessary to All an b0 unes on selten market only 50 units at $1,500 per unt out of the 1,00 units that t can sell all 1,000 units each month Compute the contribution margins under following three different aiternatives to support your dedision. (Round answers to the nearest whole Alternative 1: Maintain price, no transferss Atermative 2: Cut price, no transfers Alternative 3: Maintain price and transfers Should transfers be made? dollar, e.g. 5,275.) if so, how many units should the division transfer and at what price? (f no transter is necessary Input o units at so.) units at s The division should tansfer